Executive Summary:
Human Resource Management has become part of the strategic ploys of every organization in the effort to align the organization personal policies and practices. Although there are many unresolved issues with regards to human resource functions such as the constraints met during the selection and recruitment of potential candidates; the human resource management not only provide possible solutions they too influences the organization to effectively appreciate the differences of the not – so – like – minded individuals in the effort to maintain the morale of the employees and good working environment. The vertical alignment of personnel policies and practices with an agency's mission, vision and strategic objectives; and the horizontal integration of personnel's guiding principle or courses of action and practices with each other promotes a growth factor towards the development of commitment to serve and increase the bonds of loyalty between the management and its people. Human resource management functions, in some ways; act as a catalyst to implement a just and modifiable administration that is capable of seeing their employees as an asset not just a mere individual who work for money. The paper concludes that the HR function is a plus once given proper credit for they not only serve the wellness of the employees they help in maintaining proper channeling of communication between the top management and the employees in the essence of fueling the minds of the workforce through meeting their challenging and diverse needs.
Introduction:
Human Resource Management has been adopted by many organizations to improve for the many benefits that it has provided ranging from the recruitment to orienting new employees in introducing and monitoring policies that will hold down cost of the administration through proper staffing that utilizes the outmost skills of the employees. They not only serve to channel the needs of the employees but they too entertain queries and provide possible closure or solution to any circumstances that might affect the output of an individual or the environment he is in; they not only suggest but plan the appropriate steps to bring demand and supply into balance and they made it possible to enhance the knowledge and skills of an employee.
This paper will feature the necessary details with regards on human resource management considering topics on the development of the human resource function as to its important on the management and its people being governed and evaluated which can be appropriately done through bench marking focusing on human resource planning, recruitment and selection; management and leadership and managing diversity in the workplace. It will also discuss the importance of the human resource management in any given organization like in business profit oriented organization as such can use the benefits Human Resource Management can offer; if handled effectively for which it can also result in an organization's downfall if not properly managed.
Discussion:
The Human Resources Management per se has diverse functions ensuring the key performers which are the personnel and the management is on high performance output and conforms on practices to various rules and regulations that have been set. To expound further, the researcher shall focus on human resource planning, recruitment and selection; management and leadership; and managing diversity through benchmarking. Benchmarking is a significant element of the quality management technique that allows organizations to cope with changes and continue to meet citizen expectations (Bogan & English, 1994; Keehley et al., 1997). In this way, human resource managers can identify similarities from their organization with other competing organizations which in return, can give them an idea on their mistakes or failures that need to be done or change such as HR practices with regards to implementing policies that affect the whole organization and the implementation of industrial policies that might not only affect the organization internally as well as externally. Often times, issues address to either the management or to the employees are benchmarked to attain an exchange of ideas to discover quality service, tools, products and etc. in comparison to other work processes. The following details are the HR practices that are benchmarked in the hope of attaining a continual growth for the organization.
On the subcategory human resource planning refers on how the company particularly the human resource managers in ensuring that their staff are the people who are appropriate for jobs to be done. This is important since staffing can be an advantage or a disadvantage to the company depending on which side the company is in; if there is an understaffing the business will loss the scale and specialization of a particular department possibly influencing the customer orders thus decreases the profit. On the other hand, overstaffing can be very costly, in the manner of payments wherein there is high probability of paying an employee whose maximum potential has not successfully offered to the company. Therefore, it becomes wastage.
Although, human resource planning takes time, a minimum of 8% - 9% together with organizational structure and personnel rules and performance appraisal as indicated in the study of Farh, J. L. (1995) in human resource management in Taiwan while the greatest area of personnel work on which HR departments spend time is recruitment and selection, accounting for 14.6 percent (see Appendix A - 1). The second largest area is training and development, around 13.7 percent, followed by compensation and benefit, which spends 12.65 percent of the department's time. The given date itself, acts as a supporting details that human resource planning is not just a one – time affair but collaboration between strategic and human resource activities as an important source of competitive advantage for business firms and a way in which unity between customers and employees can be achieved in maintaining competitive advantage over its competitors (Ulrich, 1992). In addition, human resource planning is considered as an important aspect in managing the business strategies starting from the planning of employee selection and recruitment in order to efficiently allocate the resources.
In an article written by Bechet, T. (2000); defines strategic staffing as others call it "strategic workforce planning" is the process of identifying and addressing the staffing implications of business plans and strategies, or better still, as the process of identifying and addressing the staffing implications of change. This process includes: (1) identifying the staffing resources that are currently available; (2) projecting the "supply" of talent that will be available at that point in the future for which requirements have been defines such as the factoring in the effects of turnover, retirements, and planned movements; (3) identifying differences between anticipated demand and forecasted supply; and (4) developing and implementing staffing plans / actions needed to close talent gaps and eliminate surpasses. The four processes are as important as implementing the plan, however; presence of constraints can hinder the success of any growing company; considering the staffing constraints, it must be identified in order to prevent further loss and quick remedy can give a positive perspective. An example of staffing constraints could be seen when there is inability to recruit the required number of people for a particular department resulting to understaffing. Another would, when there is a lack of competent employees that may adversely influence the output of the workforce thus, disabling the processes in which the company would implement. In other words, in terms of competent staffing it can be best achieved through selection, recruitment and retention of employees, as requirement in the success of a business organization. Retention of employees would mean that the manager for HR is responsible to help the firms effectively use employee skills, provide training and development opportunity, and increase employees' satisfaction with their jobs and working conditions. If these are not met, the HR would probably loss the connection between the firm and the employees that might become an inconvenience for both parties. In addition, employees' satisfaction would generally fuel their motivation to continue working in any given company, it will not only drive their passion to work it would also, allow the company to shape its employees in line with the firm's strategic plan and goals.
In the traditional method of selection and recruitment practices done by the HR departments wherein, there is ample supply human workforce by which they are hired to do a specific job as expected and such; they are expected to do move up from their current position once they have done their task adequately within the organization. In today's business trends changes affects the traditional structure in which only a few of highly skilled individuals perform critical function to retain their status within the organization wherein, according to HR Magazine (Greble, 1997), only 60 percent of a typical corporation's employees are in the traditional arrangement; the other 40 percent are there through a variety of alternative arrangements, such as temporary employment, independent consulting or contracting, and employee leasing. These "contingent" workers are not a permanent part of the organization but rather come and go as needed for specific assignments. Yet the organization still depends on their performance to achieve its objectives. In this scenario, there is high training cost for a contractual employee. By this, once the contract has ended between the employee and the management there would be quick recruitment and selection for another batch of contingent employees where they are expected to perform their full potential without any training; in which, there will be no probationary period and the organization wont be able to monitor their output closely thus considering the negative conditions, the cost of hiring incompetent individual is very high. Effective recruitment and selection can strengthen the core of every organization; by competence this means adequate, knowledge and skills that are talented enough to do multiple tasking as part of every challenging working environment or as the competency increases, they are able to maintain quality performance thus providing an organization the stability and the continuity which is essential for organizational survival. In this way, the organization can monitor who is fit for the job and who is loyal enough to the organization that don't simply jump off to another company but those who can manage any difficulties presented with poise and dignity. Furthermore, the company can totally benefit if they have selected well potential candidates that can be done through different stages of interview and training in order to find out what physical, mental and emotional capabilities an applicant must possess that is integral in the company's success.
Management and leadership are essential to incorporate in the human resource function. To discuss further, management is to take control and making decisions; as part of the HR function, the HR manager plans strategically as to how the workforce position the organization with relation to its competing environment or organizations; or plans operationally as to the details on how the individual employee achieve the objectives set by the organization (vertical integration). Aside from that, plans are either long- term or short – term supported by the whole organization carried out by the human workforce (horizontal integration). One key to successful strategic management is the ability to achieve fit or coherence among a set of competitive factors, both internal and external to the organization, in a manner that facilitates high performance (Danis, W. 2006). The result – oriented approaches must be introduces at all levels of the public administration in line with opportunities and challenges. It is a fact that any business strategy relies mainly on its quality employee and performance wherein it goal is to align the employees' vision to the company's strategic plans. A key aspect of the Leading Edge research has been to use the case-based methodology to build a map showing how the link between strategy and individual performance is played out. In building this map, Gratton et al. (1999) considered the following three key propositions: (1) Transformation capability depends in part on the ability to create and embed processes which link business strategy to the behaviour and performance of individuals and teams. These clusters of processes link vertically (to create alignment with short-term business needs), horizontally (to create cohesion), and temporally (to transform to meet future business needs). (2) These clusters of processes can be described and observed in many organizations. (3) The strength of linkage between people processes and business strategy can vary across both processes and businesses. Means to say, that if human resource function is managed carefully or is taken seriously as it should be, will not only develop quality employees since, the management is capable of letting the employees feel that they are a valuable asset so, chances are they would likely to remain working or possibly attain higher ideals as before that might effectively influence the company. Another aspect of developing employee commitment is good leadership skills. A good leader influences the acts of the organization or group in its effort toward goal setting and goal attainment; they enable people to work more effectively in a state of interdependence. Leadership skills could be very well integrated in every HR function wherein, it can be use to motivate its people to change for the better, more of a proactive manner. It is imperative that they should know how to make key decisions quickly and decisively though it entails a considerable risk considering long – term or short – term implications to the organization that must cultivate organizational creativity and the development of new ideas resulting in increased market share and profit. To sum up, leadership skills recommend steps to foster creativity and overcomes features in an organization that limit creative potentials.
Managing diversity in the work place is an important task of every human resource management in the maintenance of a healthy working ethos in the said organization. It is always important to recognize the differences of every individual and due respect is given thus, it promotes an environment wherein the company can cater effectively distinct or unlike elements who are capable of working together and solving problems in approaches that may have not been tried or tested before but still valued. Working environment should never be hostile to its employees for it will hinder the growth of the workforce thus, limiting manual labor and output. Human resource department in every company are mindful enough to accommodate the needs and wants of every employee. What are their strategies or innovations that give their employee's hearts' content? According to Jim Harris, Ph.D., a Pensacola, Fla.-based management consultant and author of the book "Getting Employees to Fall in Love with your Company," has identified five things you can do to make people want to work for your organization: (1) capture the heart of employees. To cite instances it would be balancing the life and work of the employees by giving them enough time for breaks and acknowledging or providing positive feedback. (2) Open communication. This promotes an amenable environment that allows workers to ear out their ideas, thus; giving room for growth. (3) Create partnerships. Treat employees as associates in the business world, a companion to success in that way, one is gaining respect and trust from the other. (4) Drive learning through career, peer counsel or seminars that will enrich their knowledge thus, avoiding stagnation and timidity. Offering career conversations once in a while is also fueling them to act on their hidden talents. Lastly, (5) Offer professional growth. This could be done sharing the limelight by permitting an employee to handle work projects. Encourage wellness physically or mentally through free subscription to a gym or a health spa. Remember to offer rewards or allow them to choose what they want as an additional benefit.
The above guidelines are just examples of what one can do to be creative in improving workplace conditions. Diversity of ideas isn't a barrier to create an environment a homey-effect. One Human Resources executive stated "We work hard to understand and value differences and we celebrate our diversity" (Rosen and Lovelace, 1991, p. 81). The changing times in the workplace allowing the employees a wider perspective in their chosen jobs, increases their motivation to grab opportunities thus, greater chances of achieving success.
Conclusion:
Therefore, the researcher can definitely say that the HR function can help in boosting the company and realize its goals once the employees are manage well. Through the help of the HR function, it can obtain the trust off the employees assuring that they are given what is due such as continual training and minimum wage as a start. They not only serve the company for the purpose of attaining the outmost goal through the utilization of their employee's skills. The In addition, the HR function presents not only one fulfilling opportunities for the company but taking more a challenging view for the future.
Recommendations:
The researcher recommends that Human Resource Management will be given the ideal treatment as it should be. Basically, considering the task on appropriate staffing; in the case of understaffing the business will loss the scale and specialization of a particular department possibly influencing the customer orders thus decreases the profit. On the other hand, overstaffing can be very costly, in the manner of payments wherein there is high probability of paying an employee whose maximum potential has not successfully offered to the company. Therefore, it becomes wastage and a definite loss to the company. If this case continues, chances are the company might not gain back what has been lost.
In addition, the researcher recommends that benchmarking should be integrated in addressing issues such as policies and practices that governs an organization. It could always be a strategic tool that influences the minds of like – minded individuals who are capable of thinking as one but can generate different answers or propositions once given the motivation to speak up. A benchmarking model referred to as the "Deming Cycle," named after W. Edward Deming, a quality management expert who is "... recognized around the world as the one who gave the modern quality movement the principles by which to think and act" (Delavigne & Robertson, 1994, p. 21). The model is presented in a circle, which means that benchmarking is a continuous process. The model has the four steps: plan, do, check and act that are present in every kind of benchmarking model. In accordance to the said model, it allows the company to identify their own weak points in comparison with other organizations, as well as enhance their strategic points to further motivate the growth of success. In identifying on what needs further changes is the assessment part that act as the basis that shall determine their criteria for measuring their performance in their future or on – going ventures. In identifying what needs to be benchmarked, referred to as "critical success factors," "key business processes/practices," or "performance measures," can be one of the most difficult steps in the benchmarking process. For an organization new to benchmarking, start out by selecting an area that is relevant to the objectives of the organization, not the most complex or sensitive issue facing the organization (Spendolini, 1992). Such strategic issues may include those that are stated above which are the selection and recruitment of probable candidates, employee performance and the work processes that needs changes to maintain or create a better working environment. In this way, the management can acknowledge their employees that will in return, if credited will result to maximization of work performance.
The researcher recommends the use of effective leadership skills that could be incorporated in the managerial functions in particular, the HR managers who are in direct contact with the employees. There must be the sense of awareness, assertiveness, accountability and advocacy. Awareness would mean the responsibility to commit to goals that will influence his people to commit to the task that has been designated or to the management. Assertiveness would help a leader to express his ideas and beliefs and the capability to stand up for his rights he must consider the rights of others or the management to further analyze any policy that needs to be implemented. Accountability by means of taking responsibility of his actions and by that, disciplinary actions not only applies to the employees. Advocacy is partly similar on being assertive; the previous is the being able to speak up to the top management especially with regards to implementation of policies in the benefit of the employee's side and maintains the cause of someone.In summary, the said recommendation can not only enhance the communication between the employees and the management but can motivate individuals or groups in achieving the goal set. It is not only an internal measurement of their performance but a reflection on how they are being governed efficiently to maximize output.
Friday, April 3, 2009
Management Paper Sample on Managing Human and Organizational Resources
Executive Summary:
Human Resource Management has become part of the strategic ploys of every organization in the effort to align the organization personal policies and practices. Although there are many unresolved issues with regards to human resource functions such as the constraints met during the selection and recruitment of potential candidates; the human resource management not only provide possible solutions they too influences the organization to effectively appreciate the differences of the not – so – like – minded individuals in the effort to maintain the morale of the employees and good working environment. The vertical alignment of personnel policies and practices with an agency's mission, vision and strategic objectives; and the horizontal integration of personnel's guiding principle or courses of action and practices with each other promotes a growth factor towards the development of commitment to serve and increase the bonds of loyalty between the management and its people. Human resource management functions, in some ways; act as a catalyst to implement a just and modifiable administration that is capable of seeing their employees as an asset not just a mere individual who work for money. The paper concludes that the HR function is a plus once given proper credit for they not only serve the wellness of the employees they help in maintaining proper channeling of communication between the top management and the employees in the essence of fueling the minds of the workforce through meeting their challenging and diverse needs.
Introduction:
Human Resource Management has been adopted by many organizations to improve for the many benefits that it has provided ranging from the recruitment to orienting new employees in introducing and monitoring policies that will hold down cost of the administration through proper staffing that utilizes the outmost skills of the employees. They not only serve to channel the needs of the employees but they too entertain queries and provide possible closure or solution to any circumstances that might affect the output of an individual or the environment he is in; they not only suggest but plan the appropriate steps to bring demand and supply into balance and they made it possible to enhance the knowledge and skills of an employee.
This paper will feature the necessary details with regards on human resource management considering topics on the development of the human resource function as to its important on the management and its people being governed and evaluated which can be appropriately done through bench marking focusing on human resource planning, recruitment and selection; management and leadership and managing diversity in the workplace. It will also discuss the importance of the human resource management in any given organization like in business profit oriented organization as such can use the benefits Human Resource Management can offer; if handled effectively for which it can also result in an organization's downfall if not properly managed.
Discussion:
The Human Resources Management per se has diverse functions ensuring the key performers which are the personnel and the management is on high performance output and conforms on practices to various rules and regulations that have been set. To expound further, the researcher shall focus on human resource planning, recruitment and selection; management and leadership; and managing diversity through benchmarking. Benchmarking is a significant element of the quality management technique that allows organizations to cope with changes and continue to meet citizen expectations (Bogan & English, 1994; Keehley et al., 1997). In this way, human resource managers can identify similarities from their organization with other competing organizations which in return, can give them an idea on their mistakes or failures that need to be done or change such as HR practices with regards to implementing policies that affect the whole organization and the implementation of industrial policies that might not only affect the organization internally as well as externally. Often times, issues address to either the management or to the employees are benchmarked to attain an exchange of ideas to discover quality service, tools, products and etc. in comparison to other work processes. The following details are the HR practices that are benchmarked in the hope of attaining a continual growth for the organization.
On the subcategory human resource planning refers on how the company particularly the human resource managers in ensuring that their staff are the people who are appropriate for jobs to be done. This is important since staffing can be an advantage or a disadvantage to the company depending on which side the company is in; if there is an understaffing the business will loss the scale and specialization of a particular department possibly influencing the customer orders thus decreases the profit. On the other hand, overstaffing can be very costly, in the manner of payments wherein there is high probability of paying an employee whose maximum potential has not successfully offered to the company. Therefore, it becomes wastage.
Although, human resource planning takes time, a minimum of 8% - 9% together with organizational structure and personnel rules and performance appraisal as indicated in the study of Farh, J. L. (1995) in human resource management in Taiwan while the greatest area of personnel work on which HR departments spend time is recruitment and selection, accounting for 14.6 percent (see Appendix A - 1). The second largest area is training and development, around 13.7 percent, followed by compensation and benefit, which spends 12.65 percent of the department's time. The given date itself, acts as a supporting details that human resource planning is not just a one – time affair but collaboration between strategic and human resource activities as an important source of competitive advantage for business firms and a way in which unity between customers and employees can be achieved in maintaining competitive advantage over its competitors (Ulrich, 1992). In addition, human resource planning is considered as an important aspect in managing the business strategies starting from the planning of employee selection and recruitment in order to efficiently allocate the resources.
In an article written by Bechet, T. (2000); defines strategic staffing as others call it "strategic workforce planning" is the process of identifying and addressing the staffing implications of business plans and strategies, or better still, as the process of identifying and addressing the staffing implications of change. This process includes: (1) identifying the staffing resources that are currently available; (2) projecting the "supply" of talent that will be available at that point in the future for which requirements have been defines such as the factoring in the effects of turnover, retirements, and planned movements; (3) identifying differences between anticipated demand and forecasted supply; and (4) developing and implementing staffing plans / actions needed to close talent gaps and eliminate surpasses. The four processes are as important as implementing the plan, however; presence of constraints can hinder the success of any growing company; considering the staffing constraints, it must be identified in order to prevent further loss and quick remedy can give a positive perspective. An example of staffing constraints could be seen when there is inability to recruit the required number of people for a particular department resulting to understaffing. Another would, when there is a lack of competent employees that may adversely influence the output of the workforce thus, disabling the processes in which the company would implement. In other words, in terms of competent staffing it can be best achieved through selection, recruitment and retention of employees, as requirement in the success of a business organization. Retention of employees would mean that the manager for HR is responsible to help the firms effectively use employee skills, provide training and development opportunity, and increase employees' satisfaction with their jobs and working conditions. If these are not met, the HR would probably loss the connection between the firm and the employees that might become an inconvenience for both parties. In addition, employees' satisfaction would generally fuel their motivation to continue working in any given company, it will not only drive their passion to work it would also, allow the company to shape its employees in line with the firm's strategic plan and goals.
In the traditional method of selection and recruitment practices done by the HR departments wherein, there is ample supply human workforce by which they are hired to do a specific job as expected and such; they are expected to do move up from their current position once they have done their task adequately within the organization. In today's business trends changes affects the traditional structure in which only a few of highly skilled individuals perform critical function to retain their status within the organization wherein, according to HR Magazine (Greble, 1997), only 60 percent of a typical corporation's employees are in the traditional arrangement; the other 40 percent are there through a variety of alternative arrangements, such as temporary employment, independent consulting or contracting, and employee leasing. These "contingent" workers are not a permanent part of the organization but rather come and go as needed for specific assignments. Yet the organization still depends on their performance to achieve its objectives. In this scenario, there is high training cost for a contractual employee. By this, once the contract has ended between the employee and the management there would be quick recruitment and selection for another batch of contingent employees where they are expected to perform their full potential without any training; in which, there will be no probationary period and the organization wont be able to monitor their output closely thus considering the negative conditions, the cost of hiring incompetent individual is very high. Effective recruitment and selection can strengthen the core of every organization; by competence this means adequate, knowledge and skills that are talented enough to do multiple tasking as part of every challenging working environment or as the competency increases, they are able to maintain quality performance thus providing an organization the stability and the continuity which is essential for organizational survival. In this way, the organization can monitor who is fit for the job and who is loyal enough to the organization that don't simply jump off to another company but those who can manage any difficulties presented with poise and dignity. Furthermore, the company can totally benefit if they have selected well potential candidates that can be done through different stages of interview and training in order to find out what physical, mental and emotional capabilities an applicant must possess that is integral in the company's success.
Management and leadership are essential to incorporate in the human resource function. To discuss further, management is to take control and making decisions; as part of the HR function, the HR manager plans strategically as to how the workforce position the organization with relation to its competing environment or organizations; or plans operationally as to the details on how the individual employee achieve the objectives set by the organization (vertical integration). Aside from that, plans are either long- term or short – term supported by the whole organization carried out by the human workforce (horizontal integration). One key to successful strategic management is the ability to achieve fit or coherence among a set of competitive factors, both internal and external to the organization, in a manner that facilitates high performance (Danis, W. 2006). The result – oriented approaches must be introduces at all levels of the public administration in line with opportunities and challenges. It is a fact that any business strategy relies mainly on its quality employee and performance wherein it goal is to align the employees' vision to the company's strategic plans. A key aspect of the Leading Edge research has been to use the case-based methodology to build a map showing how the link between strategy and individual performance is played out. In building this map, Gratton et al. (1999) considered the following three key propositions: (1) Transformation capability depends in part on the ability to create and embed processes which link business strategy to the behaviour and performance of individuals and teams. These clusters of processes link vertically (to create alignment with short-term business needs), horizontally (to create cohesion), and temporally (to transform to meet future business needs). (2) These clusters of processes can be described and observed in many organizations. (3) The strength of linkage between people processes and business strategy can vary across both processes and businesses. Means to say, that if human resource function is managed carefully or is taken seriously as it should be, will not only develop quality employees since, the management is capable of letting the employees feel that they are a valuable asset so, chances are they would likely to remain working or possibly attain higher ideals as before that might effectively influence the company. Another aspect of developing employee commitment is good leadership skills. A good leader influences the acts of the organization or group in its effort toward goal setting and goal attainment; they enable people to work more effectively in a state of interdependence. Leadership skills could be very well integrated in every HR function wherein, it can be use to motivate its people to change for the better, more of a proactive manner. It is imperative that they should know how to make key decisions quickly and decisively though it entails a considerable risk considering long – term or short – term implications to the organization that must cultivate organizational creativity and the development of new ideas resulting in increased market share and profit. To sum up, leadership skills recommend steps to foster creativity and overcomes features in an organization that limit creative potentials.
Managing diversity in the work place is an important task of every human resource management in the maintenance of a healthy working ethos in the said organization. It is always important to recognize the differences of every individual and due respect is given thus, it promotes an environment wherein the company can cater effectively distinct or unlike elements who are capable of working together and solving problems in approaches that may have not been tried or tested before but still valued. Working environment should never be hostile to its employees for it will hinder the growth of the workforce thus, limiting manual labor and output. Human resource department in every company are mindful enough to accommodate the needs and wants of every employee. What are their strategies or innovations that give their employee's hearts' content? According to Jim Harris, Ph.D., a Pensacola, Fla.-based management consultant and author of the book "Getting Employees to Fall in Love with your Company," has identified five things you can do to make people want to work for your organization: (1) capture the heart of employees. To cite instances it would be balancing the life and work of the employees by giving them enough time for breaks and acknowledging or providing positive feedback. (2) Open communication. This promotes an amenable environment that allows workers to ear out their ideas, thus; giving room for growth. (3) Create partnerships. Treat employees as associates in the business world, a companion to success in that way, one is gaining respect and trust from the other. (4) Drive learning through career, peer counsel or seminars that will enrich their knowledge thus, avoiding stagnation and timidity. Offering career conversations once in a while is also fueling them to act on their hidden talents. Lastly, (5) Offer professional growth. This could be done sharing the limelight by permitting an employee to handle work projects. Encourage wellness physically or mentally through free subscription to a gym or a health spa. Remember to offer rewards or allow them to choose what they want as an additional benefit.
The above guidelines are just examples of what one can do to be creative in improving workplace conditions. Diversity of ideas isn't a barrier to create an environment a homey-effect. One Human Resources executive stated "We work hard to understand and value differences and we celebrate our diversity" (Rosen and Lovelace, 1991, p. 81). The changing times in the workplace allowing the employees a wider perspective in their chosen jobs, increases their motivation to grab opportunities thus, greater chances of achieving success.
Conclusion:
Therefore, the researcher can definitely say that the HR function can help in boosting the company and realize its goals once the employees are manage well. Through the help of the HR function, it can obtain the trust off the employees assuring that they are given what is due such as continual training and minimum wage as a start. They not only serve the company for the purpose of attaining the outmost goal through the utilization of their employee's skills. The In addition, the HR function presents not only one fulfilling opportunities for the company but taking more a challenging view for the future.
Recommendations:
The researcher recommends that Human Resource Management will be given the ideal treatment as it should be. Basically, considering the task on appropriate staffing; in the case of understaffing the business will loss the scale and specialization of a particular department possibly influencing the customer orders thus decreases the profit. On the other hand, overstaffing can be very costly, in the manner of payments wherein there is high probability of paying an employee whose maximum potential has not successfully offered to the company. Therefore, it becomes wastage and a definite loss to the company. If this case continues, chances are the company might not gain back what has been lost.
In addition, the researcher recommends that benchmarking should be integrated in addressing issues such as policies and practices that governs an organization. It could always be a strategic tool that influences the minds of like – minded individuals who are capable of thinking as one but can generate different answers or propositions once given the motivation to speak up. A benchmarking model referred to as the "Deming Cycle," named after W. Edward Deming, a quality management expert who is "... recognized around the world as the one who gave the modern quality movement the principles by which to think and act" (Delavigne & Robertson, 1994, p. 21). The model is presented in a circle, which means that benchmarking is a continuous process. The model has the four steps: plan, do, check and act that are present in every kind of benchmarking model. In accordance to the said model, it allows the company to identify their own weak points in comparison with other organizations, as well as enhance their strategic points to further motivate the growth of success. In identifying on what needs further changes is the assessment part that act as the basis that shall determine their criteria for measuring their performance in their future or on – going ventures. In identifying what needs to be benchmarked, referred to as "critical success factors," "key business processes/practices," or "performance measures," can be one of the most difficult steps in the benchmarking process. For an organization new to benchmarking, start out by selecting an area that is relevant to the objectives of the organization, not the most complex or sensitive issue facing the organization (Spendolini, 1992). Such strategic issues may include those that are stated above which are the selection and recruitment of probable candidates, employee performance and the work processes that needs changes to maintain or create a better working environment. In this way, the management can acknowledge their employees that will in return, if credited will result to maximization of work performance.
The researcher recommends the use of effective leadership skills that could be incorporated in the managerial functions in particular, the HR managers who are in direct contact with the employees. There must be the sense of awareness, assertiveness, accountability and advocacy. Awareness would mean the responsibility to commit to goals that will influence his people to commit to the task that has been designated or to the management. Assertiveness would help a leader to express his ideas and beliefs and the capability to stand up for his rights he must consider the rights of others or the management to further analyze any policy that needs to be implemented. Accountability by means of taking responsibility of his actions and by that, disciplinary actions not only applies to the employees. Advocacy is partly similar on being assertive; the previous is the being able to speak up to the top management especially with regards to implementation of policies in the benefit of the employee's side and maintains the cause of someone.In summary, the said recommendation can not only enhance the communication between the employees and the management but can motivate individuals or groups in achieving the goal set. It is not only an internal measurement of their performance but a reflection on how they are being governed efficiently to maximize output.
Human Resource Management has become part of the strategic ploys of every organization in the effort to align the organization personal policies and practices. Although there are many unresolved issues with regards to human resource functions such as the constraints met during the selection and recruitment of potential candidates; the human resource management not only provide possible solutions they too influences the organization to effectively appreciate the differences of the not – so – like – minded individuals in the effort to maintain the morale of the employees and good working environment. The vertical alignment of personnel policies and practices with an agency's mission, vision and strategic objectives; and the horizontal integration of personnel's guiding principle or courses of action and practices with each other promotes a growth factor towards the development of commitment to serve and increase the bonds of loyalty between the management and its people. Human resource management functions, in some ways; act as a catalyst to implement a just and modifiable administration that is capable of seeing their employees as an asset not just a mere individual who work for money. The paper concludes that the HR function is a plus once given proper credit for they not only serve the wellness of the employees they help in maintaining proper channeling of communication between the top management and the employees in the essence of fueling the minds of the workforce through meeting their challenging and diverse needs.
Introduction:
Human Resource Management has been adopted by many organizations to improve for the many benefits that it has provided ranging from the recruitment to orienting new employees in introducing and monitoring policies that will hold down cost of the administration through proper staffing that utilizes the outmost skills of the employees. They not only serve to channel the needs of the employees but they too entertain queries and provide possible closure or solution to any circumstances that might affect the output of an individual or the environment he is in; they not only suggest but plan the appropriate steps to bring demand and supply into balance and they made it possible to enhance the knowledge and skills of an employee.
This paper will feature the necessary details with regards on human resource management considering topics on the development of the human resource function as to its important on the management and its people being governed and evaluated which can be appropriately done through bench marking focusing on human resource planning, recruitment and selection; management and leadership and managing diversity in the workplace. It will also discuss the importance of the human resource management in any given organization like in business profit oriented organization as such can use the benefits Human Resource Management can offer; if handled effectively for which it can also result in an organization's downfall if not properly managed.
Discussion:
The Human Resources Management per se has diverse functions ensuring the key performers which are the personnel and the management is on high performance output and conforms on practices to various rules and regulations that have been set. To expound further, the researcher shall focus on human resource planning, recruitment and selection; management and leadership; and managing diversity through benchmarking. Benchmarking is a significant element of the quality management technique that allows organizations to cope with changes and continue to meet citizen expectations (Bogan & English, 1994; Keehley et al., 1997). In this way, human resource managers can identify similarities from their organization with other competing organizations which in return, can give them an idea on their mistakes or failures that need to be done or change such as HR practices with regards to implementing policies that affect the whole organization and the implementation of industrial policies that might not only affect the organization internally as well as externally. Often times, issues address to either the management or to the employees are benchmarked to attain an exchange of ideas to discover quality service, tools, products and etc. in comparison to other work processes. The following details are the HR practices that are benchmarked in the hope of attaining a continual growth for the organization.
On the subcategory human resource planning refers on how the company particularly the human resource managers in ensuring that their staff are the people who are appropriate for jobs to be done. This is important since staffing can be an advantage or a disadvantage to the company depending on which side the company is in; if there is an understaffing the business will loss the scale and specialization of a particular department possibly influencing the customer orders thus decreases the profit. On the other hand, overstaffing can be very costly, in the manner of payments wherein there is high probability of paying an employee whose maximum potential has not successfully offered to the company. Therefore, it becomes wastage.
Although, human resource planning takes time, a minimum of 8% - 9% together with organizational structure and personnel rules and performance appraisal as indicated in the study of Farh, J. L. (1995) in human resource management in Taiwan while the greatest area of personnel work on which HR departments spend time is recruitment and selection, accounting for 14.6 percent (see Appendix A - 1). The second largest area is training and development, around 13.7 percent, followed by compensation and benefit, which spends 12.65 percent of the department's time. The given date itself, acts as a supporting details that human resource planning is not just a one – time affair but collaboration between strategic and human resource activities as an important source of competitive advantage for business firms and a way in which unity between customers and employees can be achieved in maintaining competitive advantage over its competitors (Ulrich, 1992). In addition, human resource planning is considered as an important aspect in managing the business strategies starting from the planning of employee selection and recruitment in order to efficiently allocate the resources.
In an article written by Bechet, T. (2000); defines strategic staffing as others call it "strategic workforce planning" is the process of identifying and addressing the staffing implications of business plans and strategies, or better still, as the process of identifying and addressing the staffing implications of change. This process includes: (1) identifying the staffing resources that are currently available; (2) projecting the "supply" of talent that will be available at that point in the future for which requirements have been defines such as the factoring in the effects of turnover, retirements, and planned movements; (3) identifying differences between anticipated demand and forecasted supply; and (4) developing and implementing staffing plans / actions needed to close talent gaps and eliminate surpasses. The four processes are as important as implementing the plan, however; presence of constraints can hinder the success of any growing company; considering the staffing constraints, it must be identified in order to prevent further loss and quick remedy can give a positive perspective. An example of staffing constraints could be seen when there is inability to recruit the required number of people for a particular department resulting to understaffing. Another would, when there is a lack of competent employees that may adversely influence the output of the workforce thus, disabling the processes in which the company would implement. In other words, in terms of competent staffing it can be best achieved through selection, recruitment and retention of employees, as requirement in the success of a business organization. Retention of employees would mean that the manager for HR is responsible to help the firms effectively use employee skills, provide training and development opportunity, and increase employees' satisfaction with their jobs and working conditions. If these are not met, the HR would probably loss the connection between the firm and the employees that might become an inconvenience for both parties. In addition, employees' satisfaction would generally fuel their motivation to continue working in any given company, it will not only drive their passion to work it would also, allow the company to shape its employees in line with the firm's strategic plan and goals.
In the traditional method of selection and recruitment practices done by the HR departments wherein, there is ample supply human workforce by which they are hired to do a specific job as expected and such; they are expected to do move up from their current position once they have done their task adequately within the organization. In today's business trends changes affects the traditional structure in which only a few of highly skilled individuals perform critical function to retain their status within the organization wherein, according to HR Magazine (Greble, 1997), only 60 percent of a typical corporation's employees are in the traditional arrangement; the other 40 percent are there through a variety of alternative arrangements, such as temporary employment, independent consulting or contracting, and employee leasing. These "contingent" workers are not a permanent part of the organization but rather come and go as needed for specific assignments. Yet the organization still depends on their performance to achieve its objectives. In this scenario, there is high training cost for a contractual employee. By this, once the contract has ended between the employee and the management there would be quick recruitment and selection for another batch of contingent employees where they are expected to perform their full potential without any training; in which, there will be no probationary period and the organization wont be able to monitor their output closely thus considering the negative conditions, the cost of hiring incompetent individual is very high. Effective recruitment and selection can strengthen the core of every organization; by competence this means adequate, knowledge and skills that are talented enough to do multiple tasking as part of every challenging working environment or as the competency increases, they are able to maintain quality performance thus providing an organization the stability and the continuity which is essential for organizational survival. In this way, the organization can monitor who is fit for the job and who is loyal enough to the organization that don't simply jump off to another company but those who can manage any difficulties presented with poise and dignity. Furthermore, the company can totally benefit if they have selected well potential candidates that can be done through different stages of interview and training in order to find out what physical, mental and emotional capabilities an applicant must possess that is integral in the company's success.
Management and leadership are essential to incorporate in the human resource function. To discuss further, management is to take control and making decisions; as part of the HR function, the HR manager plans strategically as to how the workforce position the organization with relation to its competing environment or organizations; or plans operationally as to the details on how the individual employee achieve the objectives set by the organization (vertical integration). Aside from that, plans are either long- term or short – term supported by the whole organization carried out by the human workforce (horizontal integration). One key to successful strategic management is the ability to achieve fit or coherence among a set of competitive factors, both internal and external to the organization, in a manner that facilitates high performance (Danis, W. 2006). The result – oriented approaches must be introduces at all levels of the public administration in line with opportunities and challenges. It is a fact that any business strategy relies mainly on its quality employee and performance wherein it goal is to align the employees' vision to the company's strategic plans. A key aspect of the Leading Edge research has been to use the case-based methodology to build a map showing how the link between strategy and individual performance is played out. In building this map, Gratton et al. (1999) considered the following three key propositions: (1) Transformation capability depends in part on the ability to create and embed processes which link business strategy to the behaviour and performance of individuals and teams. These clusters of processes link vertically (to create alignment with short-term business needs), horizontally (to create cohesion), and temporally (to transform to meet future business needs). (2) These clusters of processes can be described and observed in many organizations. (3) The strength of linkage between people processes and business strategy can vary across both processes and businesses. Means to say, that if human resource function is managed carefully or is taken seriously as it should be, will not only develop quality employees since, the management is capable of letting the employees feel that they are a valuable asset so, chances are they would likely to remain working or possibly attain higher ideals as before that might effectively influence the company. Another aspect of developing employee commitment is good leadership skills. A good leader influences the acts of the organization or group in its effort toward goal setting and goal attainment; they enable people to work more effectively in a state of interdependence. Leadership skills could be very well integrated in every HR function wherein, it can be use to motivate its people to change for the better, more of a proactive manner. It is imperative that they should know how to make key decisions quickly and decisively though it entails a considerable risk considering long – term or short – term implications to the organization that must cultivate organizational creativity and the development of new ideas resulting in increased market share and profit. To sum up, leadership skills recommend steps to foster creativity and overcomes features in an organization that limit creative potentials.
Managing diversity in the work place is an important task of every human resource management in the maintenance of a healthy working ethos in the said organization. It is always important to recognize the differences of every individual and due respect is given thus, it promotes an environment wherein the company can cater effectively distinct or unlike elements who are capable of working together and solving problems in approaches that may have not been tried or tested before but still valued. Working environment should never be hostile to its employees for it will hinder the growth of the workforce thus, limiting manual labor and output. Human resource department in every company are mindful enough to accommodate the needs and wants of every employee. What are their strategies or innovations that give their employee's hearts' content? According to Jim Harris, Ph.D., a Pensacola, Fla.-based management consultant and author of the book "Getting Employees to Fall in Love with your Company," has identified five things you can do to make people want to work for your organization: (1) capture the heart of employees. To cite instances it would be balancing the life and work of the employees by giving them enough time for breaks and acknowledging or providing positive feedback. (2) Open communication. This promotes an amenable environment that allows workers to ear out their ideas, thus; giving room for growth. (3) Create partnerships. Treat employees as associates in the business world, a companion to success in that way, one is gaining respect and trust from the other. (4) Drive learning through career, peer counsel or seminars that will enrich their knowledge thus, avoiding stagnation and timidity. Offering career conversations once in a while is also fueling them to act on their hidden talents. Lastly, (5) Offer professional growth. This could be done sharing the limelight by permitting an employee to handle work projects. Encourage wellness physically or mentally through free subscription to a gym or a health spa. Remember to offer rewards or allow them to choose what they want as an additional benefit.
The above guidelines are just examples of what one can do to be creative in improving workplace conditions. Diversity of ideas isn't a barrier to create an environment a homey-effect. One Human Resources executive stated "We work hard to understand and value differences and we celebrate our diversity" (Rosen and Lovelace, 1991, p. 81). The changing times in the workplace allowing the employees a wider perspective in their chosen jobs, increases their motivation to grab opportunities thus, greater chances of achieving success.
Conclusion:
Therefore, the researcher can definitely say that the HR function can help in boosting the company and realize its goals once the employees are manage well. Through the help of the HR function, it can obtain the trust off the employees assuring that they are given what is due such as continual training and minimum wage as a start. They not only serve the company for the purpose of attaining the outmost goal through the utilization of their employee's skills. The In addition, the HR function presents not only one fulfilling opportunities for the company but taking more a challenging view for the future.
Recommendations:
The researcher recommends that Human Resource Management will be given the ideal treatment as it should be. Basically, considering the task on appropriate staffing; in the case of understaffing the business will loss the scale and specialization of a particular department possibly influencing the customer orders thus decreases the profit. On the other hand, overstaffing can be very costly, in the manner of payments wherein there is high probability of paying an employee whose maximum potential has not successfully offered to the company. Therefore, it becomes wastage and a definite loss to the company. If this case continues, chances are the company might not gain back what has been lost.
In addition, the researcher recommends that benchmarking should be integrated in addressing issues such as policies and practices that governs an organization. It could always be a strategic tool that influences the minds of like – minded individuals who are capable of thinking as one but can generate different answers or propositions once given the motivation to speak up. A benchmarking model referred to as the "Deming Cycle," named after W. Edward Deming, a quality management expert who is "... recognized around the world as the one who gave the modern quality movement the principles by which to think and act" (Delavigne & Robertson, 1994, p. 21). The model is presented in a circle, which means that benchmarking is a continuous process. The model has the four steps: plan, do, check and act that are present in every kind of benchmarking model. In accordance to the said model, it allows the company to identify their own weak points in comparison with other organizations, as well as enhance their strategic points to further motivate the growth of success. In identifying on what needs further changes is the assessment part that act as the basis that shall determine their criteria for measuring their performance in their future or on – going ventures. In identifying what needs to be benchmarked, referred to as "critical success factors," "key business processes/practices," or "performance measures," can be one of the most difficult steps in the benchmarking process. For an organization new to benchmarking, start out by selecting an area that is relevant to the objectives of the organization, not the most complex or sensitive issue facing the organization (Spendolini, 1992). Such strategic issues may include those that are stated above which are the selection and recruitment of probable candidates, employee performance and the work processes that needs changes to maintain or create a better working environment. In this way, the management can acknowledge their employees that will in return, if credited will result to maximization of work performance.
The researcher recommends the use of effective leadership skills that could be incorporated in the managerial functions in particular, the HR managers who are in direct contact with the employees. There must be the sense of awareness, assertiveness, accountability and advocacy. Awareness would mean the responsibility to commit to goals that will influence his people to commit to the task that has been designated or to the management. Assertiveness would help a leader to express his ideas and beliefs and the capability to stand up for his rights he must consider the rights of others or the management to further analyze any policy that needs to be implemented. Accountability by means of taking responsibility of his actions and by that, disciplinary actions not only applies to the employees. Advocacy is partly similar on being assertive; the previous is the being able to speak up to the top management especially with regards to implementation of policies in the benefit of the employee's side and maintains the cause of someone.In summary, the said recommendation can not only enhance the communication between the employees and the management but can motivate individuals or groups in achieving the goal set. It is not only an internal measurement of their performance but a reflection on how they are being governed efficiently to maximize output.
Management Paper Sample on Public Sector Management
Hong Kong Civil Service is one of public sector organizations in Hong Kong. The Hong Kong civil service is managed by 11 policy bureaux in the Government Secretariat, and 67 departments and agencies, mostly staffed by civil servants. The Secretary for the Civil Service is one of the Principal Officials appointed under the Accountability System and a Member of the Executive Council. He heads the Civil Service Bureau (CSB) of the Government Secretariat and is responsible to the Chief Executive for civil service policies as well as the overall management and development of the civil service. His primary role is to ensure that the civil service serves the best interests of the community and delivers various services in a trustworthy, efficient and cost effective manner. The CSB assumes overall policy responsibility for the management of the civil service, including such matters as appointment, pay and conditions of service, staff management, manpower planning, training, and discipline (www.en.wikipedia.org/wiki).
The core values of the civil service which all civil servants are expected to share and uphold includes commitment to the rule of the law, honesty and integrity, accountability for decisions and actions, political neutrality, impartiality in the execution of public functions, and dedication, professionalism and diligence in serving the community (www.en.wikipedia.org/wiki).
The Hong Kong civil service provides a wide range of services, which in many countries are divided among various public authorities, for example, public works and utilities cleansing and public health, education, fire services and the police force. Hong Kong civil servants therefore do a wide variety of jobs. As of September 30, 2004, the civil service employed about 160,100 people or about five per cent of Hong Kong's labor force. The civil service is a unified service in the sense that all its employees are subject to common appointment procedures and similar disciplinary codes (www.en.wikipedia.org/wiki).
Performance management is an integral part of a comprehensive human resource management strategy. Its objective is to maximize individuals' performance and potential with a view to attaining organizational goals and enhancing overall effectiveness and productivity. A staff performance management system aims Performance management is the handy umbrella term for all of the organizational activities involved in managing people on the job.
Public sector organizations are often conceptualized as monopolistic entities facing captive demand, enjoying guaranteed sources and levels of financing, and being relatively immune from the influences of voters, stakeholders, and political institutions such as legislatures and courts (Etzioni-Halevey, 1983; Litan & Nordhaus, 1983; Stein, 1995; Weidenbaum, 1992). Not only are most of the components of this stereotype inaccurate, but the contemporary public sector organization faces unprecedented demands from a society that grows more complex and interdependent by the day (Lewis, 1980; Mitchell & Scott, 1987; Skoldberg, 1994).
The external environment of public sector organizations can be characterized as highly turbulent, which implies an increasingly dynamic, hostile, and complex set of environmental conditions (Nutt & Backoff, 1993; Miller & Friesen, 1983; Osborne & Gaebler, 1992). Competition is arising from entirely new sources, technological change is continuous, costs are rising faster than the general rate of inflation, those who cannot pay must be served, and skilled labor is in short supply.
Through the performance appraisal process, staff at different levels is made aware of the standard of performance expected of them. Performance appraisal systems hope to achieve higher productivity outcomes by delineating how employees meet job specifications. A major challenge for performance appraisal systems is to define performance standards while maintaining objectivity. Proper management of the process helps maximize individual performance and enhance the corporate efficiency and effectiveness of the civil service as a whole. As an integral part of the overall human resource management functions, it is a major tool in human resource planning, development, and management. Performance appraisal of staff is an on-going process. While appraisal reports would normally be completed annually, regular communication between managers and staff on performance is essential. Transparency and objectivity of the appraisal process are also emphasized. To improve the system, department management is encouraged to put in place assessment panels to undertake leveling and moderating work among appraisal reports, identify under-performers/outstanding performers for appropriate action, adopt other management tools including target-based assessment and core competencies assessment, and ensure supervisors do an honest, objective and timely assessment of their subordinates. The performance management system ensures good performance and exemplary service are rewarded and given due recognition, whilst under-performers are managed, counseled and offered assistance to bring their performance up to requirement. For persistent substandard performers who fail to improve, action will be taken to retire them in the public interest. In recognition of long and meritorious services, there are the Long and Meritorious Service Travel Award Scheme, the Long and Meritorious Service Award Scheme and the Retirement Souvenir Scheme. A commendation system also exists to give recognition to exemplary performance.
Disciplinary action is taken against an act of misconduct to achieve a punitive, rehabilitative and deterrent effect. All disciplinary actions are handled promptly and in accordance with established procedures and the principles of natural justice to help enhance management credibility and staff morale.
There is both central and departmental staff consultative machinery. Centrally, there are the Senior Civil Service Council, the Model Scale 1 Staff Consultative Council, the Police Force Council, and the Disciplined Services Consultative Council. Through these channels, the Government consults its staff on any major changes, which affect their conditions of service. At the departmental level, there are Departmental Consultative Committees which aim to improve co-operation and understanding between management and staff through regular exchanges of views. There are established channels to deal with staff grievances and complaints. Individual members of staff with problems can receive counseling, advice and help. A Staff Suggestions Scheme is run by both the CSB and departments to encourage staff to make suggestions for improving the efficiency of the civil service. Awards are given to those whose suggestions are found useful. A Staff Welfare Fund caters for the interests of staff. A Staff Relief Fund provides assistance to meet unforeseen financial needs to staff.
Modell (2005) states that there have been a number of developments in research into performance management in the public sector. Four research approaches are becoming increasingly influential. These are multidimensional stakeholder approaches, the balanced scorecard approach, institutional approaches, and the radical learning approach.
Balanced Scorecard remains very relevant to the not-for-profit sector because organizations therein need to address management issues that are generally very similar to those seen in commercial entities. From its origins in the private sector, Balanced Scorecard has evolved to become a useful tool equally applicable to not-for-profit organizations, state owned companies, government departments and even internal functions within commercial organizations.
The Balanced Scorecard is a revolutionary tool that motivates staff to make the organization's vision happen. It does more than just measure performance. It is a management system that focuses the efforts of people, throughout the organization, toward achieving strategic objectives. It gives feedback on current performance and targets future performance. Simply, the Balanced Scorecard converts an organization's vision and strategy into a comprehensive set of performance and action measures that provides the basis for a strategic measurement and management system.
The objectives of a public sector organization will center on the satisfaction of external stakeholders in a similar way to those of the commercial sector organizations. The dominant stakeholder requirement for a commercial sector organization is usually simple financial returns on investments made. In public sector organization is usually more complex because the requirements of stakeholders are usually comprise of an extensive set of mostly non financial objectives addressing social, political and economic in equal measures. The customer of the organization often are represented in the stakeholder group and so are likely to present demands to the non profit altogether more complex and open ended. The application of Balance scorecard is relatively important to both public and commercial sector but more complex on the public sector organization. That is because the primary goal of commercial sector is financial return thus it is easier.
Quality management in public administration is geared towards government that is efficient, transparent, accessible and provides excellent quality service to customers. As a result of quality initiatives, number of governments developed comprehensive strategies to improve public service delivery. To implement such strategies, a number of organizations/organizational divisions have been set up at the central or local levels to facilitate quality management in the public sector. Moreover, private sector is actively involved in government quality initiatives through consulting, training and professional services.
The EFQM Excellence Model is a practical tool that can be used in a number of different ways. This model can be used as a tool for Self-Assessment, as a way to Benchmark with other organizations, as a guide to identify areas for Improvement, as a basis for a common Vocabulary and a way of thinking and as a Structure for the organization's management system.
The EFQM Model is a non-prescriptive framework based on 9 criteria. Five of these are "Enablers" and four are "Results". The "Enabler" criteria cover what an organization does. The "Results" criteria cover what an organization achieves. "Results" are caused by "Enablers" and "Enablers" are improved using feedback from 'Results'.
The EFQM Model, which recognizes there are many approaches to achieving sustainable excellence in all aspects of performance, is based on the premise that excellent results with respect to performance, customers, people and society are achieved through leadership driving policy and strategy, that is delivered through people, partnerships and resources, and processes.
Six Sigma is a data-driven, high-performance approach to analyzing and solving root causes of business problems. It ties the outputs of a business directly to marketplace requirements. As a result, Six Sigma projects lead to reduced costs, process improvement and reduced business cycle times. Six Sigma is a way of increasing efficiency. It is similar to TQM in its focus on techniques for solving problems and using statistical method to improve processes. Six Sigma approach is to train experts who work on solving important problems while they teach others in the company.
A first way to look at sectoral differences is to focus on the way outputs are measured. In the business world, owners seek to maximize their return on investment by creating firms that will generate profits. Money generated by business activity is routinely distributed to those who have ownership status in the firm and who have taken on risk in investing. Performance is measured by profits, share price, earnings, or market share or through other metrics that allow owners including shareholders to measure how well management is furthering their interests. Managers who perform poorly are routinely dismissed, and shareholders are increasingly aggressive in asserting oversight and control, especially when performance lags (Useem 1993). Although there is some argument over which metric is the best predictor of firm success, there is little doubt that common quantitative measures of firm performance are fairly clear and easily interpreted. Regulatory agencies like the Securities and Exchange Commission ensure that data on firm performance are consistently reported to all. Given these arrangements, owners and investors are in a very strong position indeed when it comes to oversight and measurement of organizational outputs.
The situation of nonprofits and government agencies is more complicated because there are neither owners who have a material interest in the organization nor easily interpretable output measures. Both public agencies and nonprofits operate under what has been called the "nondistribution constraint" (Hansmann 1980). Whereas business firms are able to distribute earnings to shareholders, government agencies and nonprofit organizations are not permitted to make such distributions but, rather, must retain any earnings. This means that there are no actors who have a direct financial interest in the organization, and thus no actor has a material stake in monitoring its operations.
Outputs in public sector organizations are often more difficult to measure. The public sector management literature has consistently acknowledged that performance measurement is rendered more difficult given the nature of the goods and services produced (Moore 1995). Often the outputs are indivisible; rarely is funding available to serious efforts at performance measurement; there are no large, mobilized groups pushing for a greater level of program assessment in government; sometimes benefits cannot be measured until far into the future; and considerable information asymmetries may be present. All of this makes performance measurement extremely difficult (Gormley and Weimer 1999).
In Hong Kong Civil Service, the Chief Executive's authority to appoint, dismiss and discipline public servants; to act on representations made by public servants; to make disciplinary regulations; and to delegate certain powers and duties under the Order.
Clarkson (1995) defines stakeholders as persons or groups that have, or claim, ownership, rights, or interests in a corporation and its activities, past, present, or future. Such claimed rights or interests are the result of transactions with, or actions taken by, the corporation, and may be legal or moral, individual or collective. Stakeholders with similar interests, claims, or rights can be classified as belonging to the same group: employees, shareholders, customers and so on.
Moreover, a stakeholder may also be defined as any individual or group who can affect or is affected by the actions, decisions, policies, practices, or goals of the organization (Carroll 1993). In the broadest sense, stakeholders may include a host of entities, including trade associations, competitors, government, customers, employees, suppliers, activist groups, customer advocate groups, unions, and political groups. It is safe to assert that effective managers consider all relevant stakeholder interests and are proactive when responding to those of highest priority. Managers must not only have a good understanding of key stakeholders' expectations but also be able to shape these expectations through engagement.
From a stakeholder perspective, an organization consists of a collection of groups and individuals who form a coalition to achieve mutually desired outcomes. Anyone with an investment in an organization's success is a stakeholder. Organizations benefit when the active and positive participation of all stakeholders is achieved. Arguably, stakeholders have a right to participate in organizational decision making because they have an investment in the organization, which may be financial or non-financial in nature.
The importance of heeding broader stakeholder interests is increasingly being put forth as being critical to long-term business success (Freeman 1994; Freeman and Evan 1990; Henriques and Sadorsky 1999). There has been increased stakeholder influence that is due to several developments. The Internet and wireless technologies provide stakeholders with better access to timely information, the means to publish their views to an international audience, and greater capacity to form alliances. This not only facilitates their involvement in decision making, but greatly enhances their ability to "shame and blame" large firms.
In a Hong Kong Civil Service, the stakeholders have the right to participate in management and governance of the organization. The stakeholders need to know on quality and effectiveness of service provision, and donors and/or funders on what the organization's resources are used for and the effectiveness of the services provided. Public involvement is crucial to the success of the projects of the Hong Kong civil service. Better communication between different community stakeholders enhances work efficiency and creates consensus and has contributed to smooth implementation of projects.
The core values of the civil service which all civil servants are expected to share and uphold includes commitment to the rule of the law, honesty and integrity, accountability for decisions and actions, political neutrality, impartiality in the execution of public functions, and dedication, professionalism and diligence in serving the community (www.en.wikipedia.org/wiki).
The Hong Kong civil service provides a wide range of services, which in many countries are divided among various public authorities, for example, public works and utilities cleansing and public health, education, fire services and the police force. Hong Kong civil servants therefore do a wide variety of jobs. As of September 30, 2004, the civil service employed about 160,100 people or about five per cent of Hong Kong's labor force. The civil service is a unified service in the sense that all its employees are subject to common appointment procedures and similar disciplinary codes (www.en.wikipedia.org/wiki).
Performance management is an integral part of a comprehensive human resource management strategy. Its objective is to maximize individuals' performance and potential with a view to attaining organizational goals and enhancing overall effectiveness and productivity. A staff performance management system aims Performance management is the handy umbrella term for all of the organizational activities involved in managing people on the job.
Public sector organizations are often conceptualized as monopolistic entities facing captive demand, enjoying guaranteed sources and levels of financing, and being relatively immune from the influences of voters, stakeholders, and political institutions such as legislatures and courts (Etzioni-Halevey, 1983; Litan & Nordhaus, 1983; Stein, 1995; Weidenbaum, 1992). Not only are most of the components of this stereotype inaccurate, but the contemporary public sector organization faces unprecedented demands from a society that grows more complex and interdependent by the day (Lewis, 1980; Mitchell & Scott, 1987; Skoldberg, 1994).
The external environment of public sector organizations can be characterized as highly turbulent, which implies an increasingly dynamic, hostile, and complex set of environmental conditions (Nutt & Backoff, 1993; Miller & Friesen, 1983; Osborne & Gaebler, 1992). Competition is arising from entirely new sources, technological change is continuous, costs are rising faster than the general rate of inflation, those who cannot pay must be served, and skilled labor is in short supply.
Through the performance appraisal process, staff at different levels is made aware of the standard of performance expected of them. Performance appraisal systems hope to achieve higher productivity outcomes by delineating how employees meet job specifications. A major challenge for performance appraisal systems is to define performance standards while maintaining objectivity. Proper management of the process helps maximize individual performance and enhance the corporate efficiency and effectiveness of the civil service as a whole. As an integral part of the overall human resource management functions, it is a major tool in human resource planning, development, and management. Performance appraisal of staff is an on-going process. While appraisal reports would normally be completed annually, regular communication between managers and staff on performance is essential. Transparency and objectivity of the appraisal process are also emphasized. To improve the system, department management is encouraged to put in place assessment panels to undertake leveling and moderating work among appraisal reports, identify under-performers/outstanding performers for appropriate action, adopt other management tools including target-based assessment and core competencies assessment, and ensure supervisors do an honest, objective and timely assessment of their subordinates. The performance management system ensures good performance and exemplary service are rewarded and given due recognition, whilst under-performers are managed, counseled and offered assistance to bring their performance up to requirement. For persistent substandard performers who fail to improve, action will be taken to retire them in the public interest. In recognition of long and meritorious services, there are the Long and Meritorious Service Travel Award Scheme, the Long and Meritorious Service Award Scheme and the Retirement Souvenir Scheme. A commendation system also exists to give recognition to exemplary performance.
Disciplinary action is taken against an act of misconduct to achieve a punitive, rehabilitative and deterrent effect. All disciplinary actions are handled promptly and in accordance with established procedures and the principles of natural justice to help enhance management credibility and staff morale.
There is both central and departmental staff consultative machinery. Centrally, there are the Senior Civil Service Council, the Model Scale 1 Staff Consultative Council, the Police Force Council, and the Disciplined Services Consultative Council. Through these channels, the Government consults its staff on any major changes, which affect their conditions of service. At the departmental level, there are Departmental Consultative Committees which aim to improve co-operation and understanding between management and staff through regular exchanges of views. There are established channels to deal with staff grievances and complaints. Individual members of staff with problems can receive counseling, advice and help. A Staff Suggestions Scheme is run by both the CSB and departments to encourage staff to make suggestions for improving the efficiency of the civil service. Awards are given to those whose suggestions are found useful. A Staff Welfare Fund caters for the interests of staff. A Staff Relief Fund provides assistance to meet unforeseen financial needs to staff.
Modell (2005) states that there have been a number of developments in research into performance management in the public sector. Four research approaches are becoming increasingly influential. These are multidimensional stakeholder approaches, the balanced scorecard approach, institutional approaches, and the radical learning approach.
Balanced Scorecard remains very relevant to the not-for-profit sector because organizations therein need to address management issues that are generally very similar to those seen in commercial entities. From its origins in the private sector, Balanced Scorecard has evolved to become a useful tool equally applicable to not-for-profit organizations, state owned companies, government departments and even internal functions within commercial organizations.
The Balanced Scorecard is a revolutionary tool that motivates staff to make the organization's vision happen. It does more than just measure performance. It is a management system that focuses the efforts of people, throughout the organization, toward achieving strategic objectives. It gives feedback on current performance and targets future performance. Simply, the Balanced Scorecard converts an organization's vision and strategy into a comprehensive set of performance and action measures that provides the basis for a strategic measurement and management system.
The objectives of a public sector organization will center on the satisfaction of external stakeholders in a similar way to those of the commercial sector organizations. The dominant stakeholder requirement for a commercial sector organization is usually simple financial returns on investments made. In public sector organization is usually more complex because the requirements of stakeholders are usually comprise of an extensive set of mostly non financial objectives addressing social, political and economic in equal measures. The customer of the organization often are represented in the stakeholder group and so are likely to present demands to the non profit altogether more complex and open ended. The application of Balance scorecard is relatively important to both public and commercial sector but more complex on the public sector organization. That is because the primary goal of commercial sector is financial return thus it is easier.
Quality management in public administration is geared towards government that is efficient, transparent, accessible and provides excellent quality service to customers. As a result of quality initiatives, number of governments developed comprehensive strategies to improve public service delivery. To implement such strategies, a number of organizations/organizational divisions have been set up at the central or local levels to facilitate quality management in the public sector. Moreover, private sector is actively involved in government quality initiatives through consulting, training and professional services.
The EFQM Excellence Model is a practical tool that can be used in a number of different ways. This model can be used as a tool for Self-Assessment, as a way to Benchmark with other organizations, as a guide to identify areas for Improvement, as a basis for a common Vocabulary and a way of thinking and as a Structure for the organization's management system.
The EFQM Model is a non-prescriptive framework based on 9 criteria. Five of these are "Enablers" and four are "Results". The "Enabler" criteria cover what an organization does. The "Results" criteria cover what an organization achieves. "Results" are caused by "Enablers" and "Enablers" are improved using feedback from 'Results'.
The EFQM Model, which recognizes there are many approaches to achieving sustainable excellence in all aspects of performance, is based on the premise that excellent results with respect to performance, customers, people and society are achieved through leadership driving policy and strategy, that is delivered through people, partnerships and resources, and processes.
Six Sigma is a data-driven, high-performance approach to analyzing and solving root causes of business problems. It ties the outputs of a business directly to marketplace requirements. As a result, Six Sigma projects lead to reduced costs, process improvement and reduced business cycle times. Six Sigma is a way of increasing efficiency. It is similar to TQM in its focus on techniques for solving problems and using statistical method to improve processes. Six Sigma approach is to train experts who work on solving important problems while they teach others in the company.
A first way to look at sectoral differences is to focus on the way outputs are measured. In the business world, owners seek to maximize their return on investment by creating firms that will generate profits. Money generated by business activity is routinely distributed to those who have ownership status in the firm and who have taken on risk in investing. Performance is measured by profits, share price, earnings, or market share or through other metrics that allow owners including shareholders to measure how well management is furthering their interests. Managers who perform poorly are routinely dismissed, and shareholders are increasingly aggressive in asserting oversight and control, especially when performance lags (Useem 1993). Although there is some argument over which metric is the best predictor of firm success, there is little doubt that common quantitative measures of firm performance are fairly clear and easily interpreted. Regulatory agencies like the Securities and Exchange Commission ensure that data on firm performance are consistently reported to all. Given these arrangements, owners and investors are in a very strong position indeed when it comes to oversight and measurement of organizational outputs.
The situation of nonprofits and government agencies is more complicated because there are neither owners who have a material interest in the organization nor easily interpretable output measures. Both public agencies and nonprofits operate under what has been called the "nondistribution constraint" (Hansmann 1980). Whereas business firms are able to distribute earnings to shareholders, government agencies and nonprofit organizations are not permitted to make such distributions but, rather, must retain any earnings. This means that there are no actors who have a direct financial interest in the organization, and thus no actor has a material stake in monitoring its operations.
Outputs in public sector organizations are often more difficult to measure. The public sector management literature has consistently acknowledged that performance measurement is rendered more difficult given the nature of the goods and services produced (Moore 1995). Often the outputs are indivisible; rarely is funding available to serious efforts at performance measurement; there are no large, mobilized groups pushing for a greater level of program assessment in government; sometimes benefits cannot be measured until far into the future; and considerable information asymmetries may be present. All of this makes performance measurement extremely difficult (Gormley and Weimer 1999).
In Hong Kong Civil Service, the Chief Executive's authority to appoint, dismiss and discipline public servants; to act on representations made by public servants; to make disciplinary regulations; and to delegate certain powers and duties under the Order.
Clarkson (1995) defines stakeholders as persons or groups that have, or claim, ownership, rights, or interests in a corporation and its activities, past, present, or future. Such claimed rights or interests are the result of transactions with, or actions taken by, the corporation, and may be legal or moral, individual or collective. Stakeholders with similar interests, claims, or rights can be classified as belonging to the same group: employees, shareholders, customers and so on.
Moreover, a stakeholder may also be defined as any individual or group who can affect or is affected by the actions, decisions, policies, practices, or goals of the organization (Carroll 1993). In the broadest sense, stakeholders may include a host of entities, including trade associations, competitors, government, customers, employees, suppliers, activist groups, customer advocate groups, unions, and political groups. It is safe to assert that effective managers consider all relevant stakeholder interests and are proactive when responding to those of highest priority. Managers must not only have a good understanding of key stakeholders' expectations but also be able to shape these expectations through engagement.
From a stakeholder perspective, an organization consists of a collection of groups and individuals who form a coalition to achieve mutually desired outcomes. Anyone with an investment in an organization's success is a stakeholder. Organizations benefit when the active and positive participation of all stakeholders is achieved. Arguably, stakeholders have a right to participate in organizational decision making because they have an investment in the organization, which may be financial or non-financial in nature.
The importance of heeding broader stakeholder interests is increasingly being put forth as being critical to long-term business success (Freeman 1994; Freeman and Evan 1990; Henriques and Sadorsky 1999). There has been increased stakeholder influence that is due to several developments. The Internet and wireless technologies provide stakeholders with better access to timely information, the means to publish their views to an international audience, and greater capacity to form alliances. This not only facilitates their involvement in decision making, but greatly enhances their ability to "shame and blame" large firms.
In a Hong Kong Civil Service, the stakeholders have the right to participate in management and governance of the organization. The stakeholders need to know on quality and effectiveness of service provision, and donors and/or funders on what the organization's resources are used for and the effectiveness of the services provided. Public involvement is crucial to the success of the projects of the Hong Kong civil service. Better communication between different community stakeholders enhances work efficiency and creates consensus and has contributed to smooth implementation of projects.
Management Paper Sample on Public Sector Management
Hong Kong Civil Service is one of public sector organizations in Hong Kong. The Hong Kong civil service is managed by 11 policy bureaux in the Government Secretariat, and 67 departments and agencies, mostly staffed by civil servants. The Secretary for the Civil Service is one of the Principal Officials appointed under the Accountability System and a Member of the Executive Council. He heads the Civil Service Bureau (CSB) of the Government Secretariat and is responsible to the Chief Executive for civil service policies as well as the overall management and development of the civil service. His primary role is to ensure that the civil service serves the best interests of the community and delivers various services in a trustworthy, efficient and cost effective manner. The CSB assumes overall policy responsibility for the management of the civil service, including such matters as appointment, pay and conditions of service, staff management, manpower planning, training, and discipline (www.en.wikipedia.org/wiki).
The core values of the civil service which all civil servants are expected to share and uphold includes commitment to the rule of the law, honesty and integrity, accountability for decisions and actions, political neutrality, impartiality in the execution of public functions, and dedication, professionalism and diligence in serving the community (www.en.wikipedia.org/wiki).
The Hong Kong civil service provides a wide range of services, which in many countries are divided among various public authorities, for example, public works and utilities cleansing and public health, education, fire services and the police force. Hong Kong civil servants therefore do a wide variety of jobs. As of September 30, 2004, the civil service employed about 160,100 people or about five per cent of Hong Kong's labor force. The civil service is a unified service in the sense that all its employees are subject to common appointment procedures and similar disciplinary codes (www.en.wikipedia.org/wiki).
Performance management is an integral part of a comprehensive human resource management strategy. Its objective is to maximize individuals' performance and potential with a view to attaining organizational goals and enhancing overall effectiveness and productivity. A staff performance management system aims Performance management is the handy umbrella term for all of the organizational activities involved in managing people on the job.
Public sector organizations are often conceptualized as monopolistic entities facing captive demand, enjoying guaranteed sources and levels of financing, and being relatively immune from the influences of voters, stakeholders, and political institutions such as legislatures and courts (Etzioni-Halevey, 1983; Litan & Nordhaus, 1983; Stein, 1995; Weidenbaum, 1992). Not only are most of the components of this stereotype inaccurate, but the contemporary public sector organization faces unprecedented demands from a society that grows more complex and interdependent by the day (Lewis, 1980; Mitchell & Scott, 1987; Skoldberg, 1994).
The external environment of public sector organizations can be characterized as highly turbulent, which implies an increasingly dynamic, hostile, and complex set of environmental conditions (Nutt & Backoff, 1993; Miller & Friesen, 1983; Osborne & Gaebler, 1992). Competition is arising from entirely new sources, technological change is continuous, costs are rising faster than the general rate of inflation, those who cannot pay must be served, and skilled labor is in short supply.
Through the performance appraisal process, staff at different levels is made aware of the standard of performance expected of them. Performance appraisal systems hope to achieve higher productivity outcomes by delineating how employees meet job specifications. A major challenge for performance appraisal systems is to define performance standards while maintaining objectivity. Proper management of the process helps maximize individual performance and enhance the corporate efficiency and effectiveness of the civil service as a whole. As an integral part of the overall human resource management functions, it is a major tool in human resource planning, development, and management. Performance appraisal of staff is an on-going process. While appraisal reports would normally be completed annually, regular communication between managers and staff on performance is essential. Transparency and objectivity of the appraisal process are also emphasized. To improve the system, department management is encouraged to put in place assessment panels to undertake leveling and moderating work among appraisal reports, identify under-performers/outstanding performers for appropriate action, adopt other management tools including target-based assessment and core competencies assessment, and ensure supervisors do an honest, objective and timely assessment of their subordinates. The performance management system ensures good performance and exemplary service are rewarded and given due recognition, whilst under-performers are managed, counseled and offered assistance to bring their performance up to requirement. For persistent substandard performers who fail to improve, action will be taken to retire them in the public interest. In recognition of long and meritorious services, there are the Long and Meritorious Service Travel Award Scheme, the Long and Meritorious Service Award Scheme and the Retirement Souvenir Scheme. A commendation system also exists to give recognition to exemplary performance.
Disciplinary action is taken against an act of misconduct to achieve a punitive, rehabilitative and deterrent effect. All disciplinary actions are handled promptly and in accordance with established procedures and the principles of natural justice to help enhance management credibility and staff morale.
There is both central and departmental staff consultative machinery. Centrally, there are the Senior Civil Service Council, the Model Scale 1 Staff Consultative Council, the Police Force Council, and the Disciplined Services Consultative Council. Through these channels, the Government consults its staff on any major changes, which affect their conditions of service. At the departmental level, there are Departmental Consultative Committees which aim to improve co-operation and understanding between management and staff through regular exchanges of views. There are established channels to deal with staff grievances and complaints. Individual members of staff with problems can receive counseling, advice and help. A Staff Suggestions Scheme is run by both the CSB and departments to encourage staff to make suggestions for improving the efficiency of the civil service. Awards are given to those whose suggestions are found useful. A Staff Welfare Fund caters for the interests of staff. A Staff Relief Fund provides assistance to meet unforeseen financial needs to staff.
Modell (2005) states that there have been a number of developments in research into performance management in the public sector. Four research approaches are becoming increasingly influential. These are multidimensional stakeholder approaches, the balanced scorecard approach, institutional approaches, and the radical learning approach.
Balanced Scorecard remains very relevant to the not-for-profit sector because organizations therein need to address management issues that are generally very similar to those seen in commercial entities. From its origins in the private sector, Balanced Scorecard has evolved to become a useful tool equally applicable to not-for-profit organizations, state owned companies, government departments and even internal functions within commercial organizations.
The Balanced Scorecard is a revolutionary tool that motivates staff to make the organization's vision happen. It does more than just measure performance. It is a management system that focuses the efforts of people, throughout the organization, toward achieving strategic objectives. It gives feedback on current performance and targets future performance. Simply, the Balanced Scorecard converts an organization's vision and strategy into a comprehensive set of performance and action measures that provides the basis for a strategic measurement and management system.
The objectives of a public sector organization will center on the satisfaction of external stakeholders in a similar way to those of the commercial sector organizations. The dominant stakeholder requirement for a commercial sector organization is usually simple financial returns on investments made. In public sector organization is usually more complex because the requirements of stakeholders are usually comprise of an extensive set of mostly non financial objectives addressing social, political and economic in equal measures. The customer of the organization often are represented in the stakeholder group and so are likely to present demands to the non profit altogether more complex and open ended. The application of Balance scorecard is relatively important to both public and commercial sector but more complex on the public sector organization. That is because the primary goal of commercial sector is financial return thus it is easier.
Quality management in public administration is geared towards government that is efficient, transparent, accessible and provides excellent quality service to customers. As a result of quality initiatives, number of governments developed comprehensive strategies to improve public service delivery. To implement such strategies, a number of organizations/organizational divisions have been set up at the central or local levels to facilitate quality management in the public sector. Moreover, private sector is actively involved in government quality initiatives through consulting, training and professional services.
The EFQM Excellence Model is a practical tool that can be used in a number of different ways. This model can be used as a tool for Self-Assessment, as a way to Benchmark with other organizations, as a guide to identify areas for Improvement, as a basis for a common Vocabulary and a way of thinking and as a Structure for the organization's management system.
The EFQM Model is a non-prescriptive framework based on 9 criteria. Five of these are "Enablers" and four are "Results". The "Enabler" criteria cover what an organization does. The "Results" criteria cover what an organization achieves. "Results" are caused by "Enablers" and "Enablers" are improved using feedback from 'Results'.
The EFQM Model, which recognizes there are many approaches to achieving sustainable excellence in all aspects of performance, is based on the premise that excellent results with respect to performance, customers, people and society are achieved through leadership driving policy and strategy, that is delivered through people, partnerships and resources, and processes.
Six Sigma is a data-driven, high-performance approach to analyzing and solving root causes of business problems. It ties the outputs of a business directly to marketplace requirements. As a result, Six Sigma projects lead to reduced costs, process improvement and reduced business cycle times. Six Sigma is a way of increasing efficiency. It is similar to TQM in its focus on techniques for solving problems and using statistical method to improve processes. Six Sigma approach is to train experts who work on solving important problems while they teach others in the company.
A first way to look at sectoral differences is to focus on the way outputs are measured. In the business world, owners seek to maximize their return on investment by creating firms that will generate profits. Money generated by business activity is routinely distributed to those who have ownership status in the firm and who have taken on risk in investing. Performance is measured by profits, share price, earnings, or market share or through other metrics that allow owners including shareholders to measure how well management is furthering their interests. Managers who perform poorly are routinely dismissed, and shareholders are increasingly aggressive in asserting oversight and control, especially when performance lags (Useem 1993). Although there is some argument over which metric is the best predictor of firm success, there is little doubt that common quantitative measures of firm performance are fairly clear and easily interpreted. Regulatory agencies like the Securities and Exchange Commission ensure that data on firm performance are consistently reported to all. Given these arrangements, owners and investors are in a very strong position indeed when it comes to oversight and measurement of organizational outputs.
The situation of nonprofits and government agencies is more complicated because there are neither owners who have a material interest in the organization nor easily interpretable output measures. Both public agencies and nonprofits operate under what has been called the "nondistribution constraint" (Hansmann 1980). Whereas business firms are able to distribute earnings to shareholders, government agencies and nonprofit organizations are not permitted to make such distributions but, rather, must retain any earnings. This means that there are no actors who have a direct financial interest in the organization, and thus no actor has a material stake in monitoring its operations.
Outputs in public sector organizations are often more difficult to measure. The public sector management literature has consistently acknowledged that performance measurement is rendered more difficult given the nature of the goods and services produced (Moore 1995). Often the outputs are indivisible; rarely is funding available to serious efforts at performance measurement; there are no large, mobilized groups pushing for a greater level of program assessment in government; sometimes benefits cannot be measured until far into the future; and considerable information asymmetries may be present. All of this makes performance measurement extremely difficult (Gormley and Weimer 1999).
In Hong Kong Civil Service, the Chief Executive's authority to appoint, dismiss and discipline public servants; to act on representations made by public servants; to make disciplinary regulations; and to delegate certain powers and duties under the Order.
Clarkson (1995) defines stakeholders as persons or groups that have, or claim, ownership, rights, or interests in a corporation and its activities, past, present, or future. Such claimed rights or interests are the result of transactions with, or actions taken by, the corporation, and may be legal or moral, individual or collective. Stakeholders with similar interests, claims, or rights can be classified as belonging to the same group: employees, shareholders, customers and so on.
Moreover, a stakeholder may also be defined as any individual or group who can affect or is affected by the actions, decisions, policies, practices, or goals of the organization (Carroll 1993). In the broadest sense, stakeholders may include a host of entities, including trade associations, competitors, government, customers, employees, suppliers, activist groups, customer advocate groups, unions, and political groups. It is safe to assert that effective managers consider all relevant stakeholder interests and are proactive when responding to those of highest priority. Managers must not only have a good understanding of key stakeholders' expectations but also be able to shape these expectations through engagement.
From a stakeholder perspective, an organization consists of a collection of groups and individuals who form a coalition to achieve mutually desired outcomes. Anyone with an investment in an organization's success is a stakeholder. Organizations benefit when the active and positive participation of all stakeholders is achieved. Arguably, stakeholders have a right to participate in organizational decision making because they have an investment in the organization, which may be financial or non-financial in nature.
The importance of heeding broader stakeholder interests is increasingly being put forth as being critical to long-term business success (Freeman 1994; Freeman and Evan 1990; Henriques and Sadorsky 1999). There has been increased stakeholder influence that is due to several developments. The Internet and wireless technologies provide stakeholders with better access to timely information, the means to publish their views to an international audience, and greater capacity to form alliances. This not only facilitates their involvement in decision making, but greatly enhances their ability to "shame and blame" large firms.
In a Hong Kong Civil Service, the stakeholders have the right to participate in management and governance of the organization. The stakeholders need to know on quality and effectiveness of service provision, and donors and/or funders on what the organization's resources are used for and the effectiveness of the services provided. Public involvement is crucial to the success of the projects of the Hong Kong civil service. Better communication between different community stakeholders enhances work efficiency and creates consensus and has contributed to smooth implementation of projects.
The core values of the civil service which all civil servants are expected to share and uphold includes commitment to the rule of the law, honesty and integrity, accountability for decisions and actions, political neutrality, impartiality in the execution of public functions, and dedication, professionalism and diligence in serving the community (www.en.wikipedia.org/wiki).
The Hong Kong civil service provides a wide range of services, which in many countries are divided among various public authorities, for example, public works and utilities cleansing and public health, education, fire services and the police force. Hong Kong civil servants therefore do a wide variety of jobs. As of September 30, 2004, the civil service employed about 160,100 people or about five per cent of Hong Kong's labor force. The civil service is a unified service in the sense that all its employees are subject to common appointment procedures and similar disciplinary codes (www.en.wikipedia.org/wiki).
Performance management is an integral part of a comprehensive human resource management strategy. Its objective is to maximize individuals' performance and potential with a view to attaining organizational goals and enhancing overall effectiveness and productivity. A staff performance management system aims Performance management is the handy umbrella term for all of the organizational activities involved in managing people on the job.
Public sector organizations are often conceptualized as monopolistic entities facing captive demand, enjoying guaranteed sources and levels of financing, and being relatively immune from the influences of voters, stakeholders, and political institutions such as legislatures and courts (Etzioni-Halevey, 1983; Litan & Nordhaus, 1983; Stein, 1995; Weidenbaum, 1992). Not only are most of the components of this stereotype inaccurate, but the contemporary public sector organization faces unprecedented demands from a society that grows more complex and interdependent by the day (Lewis, 1980; Mitchell & Scott, 1987; Skoldberg, 1994).
The external environment of public sector organizations can be characterized as highly turbulent, which implies an increasingly dynamic, hostile, and complex set of environmental conditions (Nutt & Backoff, 1993; Miller & Friesen, 1983; Osborne & Gaebler, 1992). Competition is arising from entirely new sources, technological change is continuous, costs are rising faster than the general rate of inflation, those who cannot pay must be served, and skilled labor is in short supply.
Through the performance appraisal process, staff at different levels is made aware of the standard of performance expected of them. Performance appraisal systems hope to achieve higher productivity outcomes by delineating how employees meet job specifications. A major challenge for performance appraisal systems is to define performance standards while maintaining objectivity. Proper management of the process helps maximize individual performance and enhance the corporate efficiency and effectiveness of the civil service as a whole. As an integral part of the overall human resource management functions, it is a major tool in human resource planning, development, and management. Performance appraisal of staff is an on-going process. While appraisal reports would normally be completed annually, regular communication between managers and staff on performance is essential. Transparency and objectivity of the appraisal process are also emphasized. To improve the system, department management is encouraged to put in place assessment panels to undertake leveling and moderating work among appraisal reports, identify under-performers/outstanding performers for appropriate action, adopt other management tools including target-based assessment and core competencies assessment, and ensure supervisors do an honest, objective and timely assessment of their subordinates. The performance management system ensures good performance and exemplary service are rewarded and given due recognition, whilst under-performers are managed, counseled and offered assistance to bring their performance up to requirement. For persistent substandard performers who fail to improve, action will be taken to retire them in the public interest. In recognition of long and meritorious services, there are the Long and Meritorious Service Travel Award Scheme, the Long and Meritorious Service Award Scheme and the Retirement Souvenir Scheme. A commendation system also exists to give recognition to exemplary performance.
Disciplinary action is taken against an act of misconduct to achieve a punitive, rehabilitative and deterrent effect. All disciplinary actions are handled promptly and in accordance with established procedures and the principles of natural justice to help enhance management credibility and staff morale.
There is both central and departmental staff consultative machinery. Centrally, there are the Senior Civil Service Council, the Model Scale 1 Staff Consultative Council, the Police Force Council, and the Disciplined Services Consultative Council. Through these channels, the Government consults its staff on any major changes, which affect their conditions of service. At the departmental level, there are Departmental Consultative Committees which aim to improve co-operation and understanding between management and staff through regular exchanges of views. There are established channels to deal with staff grievances and complaints. Individual members of staff with problems can receive counseling, advice and help. A Staff Suggestions Scheme is run by both the CSB and departments to encourage staff to make suggestions for improving the efficiency of the civil service. Awards are given to those whose suggestions are found useful. A Staff Welfare Fund caters for the interests of staff. A Staff Relief Fund provides assistance to meet unforeseen financial needs to staff.
Modell (2005) states that there have been a number of developments in research into performance management in the public sector. Four research approaches are becoming increasingly influential. These are multidimensional stakeholder approaches, the balanced scorecard approach, institutional approaches, and the radical learning approach.
Balanced Scorecard remains very relevant to the not-for-profit sector because organizations therein need to address management issues that are generally very similar to those seen in commercial entities. From its origins in the private sector, Balanced Scorecard has evolved to become a useful tool equally applicable to not-for-profit organizations, state owned companies, government departments and even internal functions within commercial organizations.
The Balanced Scorecard is a revolutionary tool that motivates staff to make the organization's vision happen. It does more than just measure performance. It is a management system that focuses the efforts of people, throughout the organization, toward achieving strategic objectives. It gives feedback on current performance and targets future performance. Simply, the Balanced Scorecard converts an organization's vision and strategy into a comprehensive set of performance and action measures that provides the basis for a strategic measurement and management system.
The objectives of a public sector organization will center on the satisfaction of external stakeholders in a similar way to those of the commercial sector organizations. The dominant stakeholder requirement for a commercial sector organization is usually simple financial returns on investments made. In public sector organization is usually more complex because the requirements of stakeholders are usually comprise of an extensive set of mostly non financial objectives addressing social, political and economic in equal measures. The customer of the organization often are represented in the stakeholder group and so are likely to present demands to the non profit altogether more complex and open ended. The application of Balance scorecard is relatively important to both public and commercial sector but more complex on the public sector organization. That is because the primary goal of commercial sector is financial return thus it is easier.
Quality management in public administration is geared towards government that is efficient, transparent, accessible and provides excellent quality service to customers. As a result of quality initiatives, number of governments developed comprehensive strategies to improve public service delivery. To implement such strategies, a number of organizations/organizational divisions have been set up at the central or local levels to facilitate quality management in the public sector. Moreover, private sector is actively involved in government quality initiatives through consulting, training and professional services.
The EFQM Excellence Model is a practical tool that can be used in a number of different ways. This model can be used as a tool for Self-Assessment, as a way to Benchmark with other organizations, as a guide to identify areas for Improvement, as a basis for a common Vocabulary and a way of thinking and as a Structure for the organization's management system.
The EFQM Model is a non-prescriptive framework based on 9 criteria. Five of these are "Enablers" and four are "Results". The "Enabler" criteria cover what an organization does. The "Results" criteria cover what an organization achieves. "Results" are caused by "Enablers" and "Enablers" are improved using feedback from 'Results'.
The EFQM Model, which recognizes there are many approaches to achieving sustainable excellence in all aspects of performance, is based on the premise that excellent results with respect to performance, customers, people and society are achieved through leadership driving policy and strategy, that is delivered through people, partnerships and resources, and processes.
Six Sigma is a data-driven, high-performance approach to analyzing and solving root causes of business problems. It ties the outputs of a business directly to marketplace requirements. As a result, Six Sigma projects lead to reduced costs, process improvement and reduced business cycle times. Six Sigma is a way of increasing efficiency. It is similar to TQM in its focus on techniques for solving problems and using statistical method to improve processes. Six Sigma approach is to train experts who work on solving important problems while they teach others in the company.
A first way to look at sectoral differences is to focus on the way outputs are measured. In the business world, owners seek to maximize their return on investment by creating firms that will generate profits. Money generated by business activity is routinely distributed to those who have ownership status in the firm and who have taken on risk in investing. Performance is measured by profits, share price, earnings, or market share or through other metrics that allow owners including shareholders to measure how well management is furthering their interests. Managers who perform poorly are routinely dismissed, and shareholders are increasingly aggressive in asserting oversight and control, especially when performance lags (Useem 1993). Although there is some argument over which metric is the best predictor of firm success, there is little doubt that common quantitative measures of firm performance are fairly clear and easily interpreted. Regulatory agencies like the Securities and Exchange Commission ensure that data on firm performance are consistently reported to all. Given these arrangements, owners and investors are in a very strong position indeed when it comes to oversight and measurement of organizational outputs.
The situation of nonprofits and government agencies is more complicated because there are neither owners who have a material interest in the organization nor easily interpretable output measures. Both public agencies and nonprofits operate under what has been called the "nondistribution constraint" (Hansmann 1980). Whereas business firms are able to distribute earnings to shareholders, government agencies and nonprofit organizations are not permitted to make such distributions but, rather, must retain any earnings. This means that there are no actors who have a direct financial interest in the organization, and thus no actor has a material stake in monitoring its operations.
Outputs in public sector organizations are often more difficult to measure. The public sector management literature has consistently acknowledged that performance measurement is rendered more difficult given the nature of the goods and services produced (Moore 1995). Often the outputs are indivisible; rarely is funding available to serious efforts at performance measurement; there are no large, mobilized groups pushing for a greater level of program assessment in government; sometimes benefits cannot be measured until far into the future; and considerable information asymmetries may be present. All of this makes performance measurement extremely difficult (Gormley and Weimer 1999).
In Hong Kong Civil Service, the Chief Executive's authority to appoint, dismiss and discipline public servants; to act on representations made by public servants; to make disciplinary regulations; and to delegate certain powers and duties under the Order.
Clarkson (1995) defines stakeholders as persons or groups that have, or claim, ownership, rights, or interests in a corporation and its activities, past, present, or future. Such claimed rights or interests are the result of transactions with, or actions taken by, the corporation, and may be legal or moral, individual or collective. Stakeholders with similar interests, claims, or rights can be classified as belonging to the same group: employees, shareholders, customers and so on.
Moreover, a stakeholder may also be defined as any individual or group who can affect or is affected by the actions, decisions, policies, practices, or goals of the organization (Carroll 1993). In the broadest sense, stakeholders may include a host of entities, including trade associations, competitors, government, customers, employees, suppliers, activist groups, customer advocate groups, unions, and political groups. It is safe to assert that effective managers consider all relevant stakeholder interests and are proactive when responding to those of highest priority. Managers must not only have a good understanding of key stakeholders' expectations but also be able to shape these expectations through engagement.
From a stakeholder perspective, an organization consists of a collection of groups and individuals who form a coalition to achieve mutually desired outcomes. Anyone with an investment in an organization's success is a stakeholder. Organizations benefit when the active and positive participation of all stakeholders is achieved. Arguably, stakeholders have a right to participate in organizational decision making because they have an investment in the organization, which may be financial or non-financial in nature.
The importance of heeding broader stakeholder interests is increasingly being put forth as being critical to long-term business success (Freeman 1994; Freeman and Evan 1990; Henriques and Sadorsky 1999). There has been increased stakeholder influence that is due to several developments. The Internet and wireless technologies provide stakeholders with better access to timely information, the means to publish their views to an international audience, and greater capacity to form alliances. This not only facilitates their involvement in decision making, but greatly enhances their ability to "shame and blame" large firms.
In a Hong Kong Civil Service, the stakeholders have the right to participate in management and governance of the organization. The stakeholders need to know on quality and effectiveness of service provision, and donors and/or funders on what the organization's resources are used for and the effectiveness of the services provided. Public involvement is crucial to the success of the projects of the Hong Kong civil service. Better communication between different community stakeholders enhances work efficiency and creates consensus and has contributed to smooth implementation of projects.
Management Paper Sample on DHL Aviation (Hong Kong) Ltd
Introduction
The paper is a discussion on operations and operations management using DHL Aviations Hong Kong Ltd. as an example. The paper tackles about the operations of DHL in Hong Kong and other related issues concerning operations management.
Company Profile
DHL Aviation (Hong Kong) Ltd. or simply DHL Hong Kong is part of the expansion and growth of DHL Express International that originated in San Francisco and now owned by the Deutsche Post World Net (DPWN). DHL belongs to the international air express industry, whose business includes courier services, logistics, air and ocean freight, consultancy and other value-added services related supply chain such as network and facility design, warehousing, transportation management and consolidation, primary and secondary packaging, customs management, security and cargo insurance.
DHL started at Hong Kong in 1972 in order to provide services in the Asia Pacific Region. In 2000, the company's Central Asia Hub at the Hong Kong International airport began operation that handles over 100 flights a day that further resulted to agreement and construction of the Express Cargo Terminal of the Hong Kong International Airport wherein DHL invested about HK$780 million and serving as the home of DHL's Asian Network (DHL, 2006) that includes DHL Bangkok, China and others. The shipment handling operations of the DHL central Asia Hub is supported by Material Handling System with a throughput of about 20,000 pieces per hour.
DHL Operations
Supporting the company's various services are the primary activities and complex process critical to DHL's operations. These are: order taking, pick up, documentation, tracing of the supplies when information is needed, billing, packaging, transportation and delivery, problem solving as well as advice and information to the clients and partners (Kostecki, 1998). These are the activities involved in DHL's operations management that make DHL productive and efficient. People involved at these particular activities work together aiming for a common goal which is to provide quality customer service at attractive prices. This is the goal the company has to achieve in order to obtain long-term profitability.
As an express carrier, DHL does not provide products but services. DHL Aviation Hong Kong or DHL Express HK is under the Express Corporate Division of DHL that offers companies and private customers courier, express, and parcel (CEP) services, excluding logistics which is handled by other divisions. DHL does not manufacture products but rather services thus the inputs associated with DHL is not raw materials but equipments such as computers for documentation and tracking of shipments as well as for communication with customers and business partners, and tracking device such as radio frequency identification (RFID); materials such as boxes, packaging tapes, tags and seals for the protection of the goods to be delivered; manpower or human resources such as delivery staff, drivers, customer service representatives, logistics analysts that provide advice and consultations, and managers that ensure who ensure timely delivery; and transportation medium such as ships for ocean shipments, airlines for air freight and trucks for land freight. With the case of DHL Aviation, they used more of air transportation thus they invested on a terminal at the Hong Kong International airport.
DHL's Operations Management
Operations management is defined as the management of function that is responsible for all the activities directly concerned with making a product. It is responsible for collecting various inputs, and converting them into desired outputs (Waters, 1996). This definition is more common for manufacturing companies. However, when you are in the service industry, instead of product, services are created to achieve the desired outputs.
As an express carrier, timely delivery and customer satisfaction are its objectives. These objectives can be met by effective operations management. However, problems commonly arise in a company and through operations management problems can be tackled by observation, formulation, analysis and implementation (Hanson & Olsson, 2001). Through observation managers can be able to realize if there are problems. This can be done by collecting data and setting objectives. For example, DHL set their sales to increase by 5% in 2005 but the company was not able to reach this objective but instead sales dropped by 2%. Managers can realize problems such as untimely delivery and poor package handling as the probable cause of decreasing sales and can therefore provide solution through formulation. Formulation basically involves the review of related data, building models of the current situation and finding solutions to the problems. These solutions are commonly the basic operations management practice such as batch processing, theory of constraints, bottleneck analysis and improving customer service.
Analysis follows formulation in which managers examine the solutions provided and evaluate the best possible solutions to be implemented. Operations managers are also responsible for monitoring of improvements.
With the kind of services that DHL provides, it commonly used operations management practices such as batch processing. With its batch planning system, it can control the number of orders to be pack and to which country it will be delivered. Its batch planning system is computer controlled while its packing system uses automatic packing machine thus DHL is productive enough to be considered having good operations management.
However, since DHL Hong Kong delivers goods and provides services mostly outside Hong Kong, it still occasionally encounters late delivery due to inefficient customs controls and procedures. That is, DHL sometimes encountered problems in getting the parcels through the border controls and ensuring necessary documentations (Kostecki, 1998). To address this issue, DHL parent company puts local customs service department in every major country whose mission is to get the cargo through customs at the right time, and responsible for daily reports, providing detailed information about customs troublespots (Lorange, 1998).
The paper is a discussion on operations and operations management using DHL Aviations Hong Kong Ltd. as an example. The paper tackles about the operations of DHL in Hong Kong and other related issues concerning operations management.
Company Profile
DHL Aviation (Hong Kong) Ltd. or simply DHL Hong Kong is part of the expansion and growth of DHL Express International that originated in San Francisco and now owned by the Deutsche Post World Net (DPWN). DHL belongs to the international air express industry, whose business includes courier services, logistics, air and ocean freight, consultancy and other value-added services related supply chain such as network and facility design, warehousing, transportation management and consolidation, primary and secondary packaging, customs management, security and cargo insurance.
DHL started at Hong Kong in 1972 in order to provide services in the Asia Pacific Region. In 2000, the company's Central Asia Hub at the Hong Kong International airport began operation that handles over 100 flights a day that further resulted to agreement and construction of the Express Cargo Terminal of the Hong Kong International Airport wherein DHL invested about HK$780 million and serving as the home of DHL's Asian Network (DHL, 2006) that includes DHL Bangkok, China and others. The shipment handling operations of the DHL central Asia Hub is supported by Material Handling System with a throughput of about 20,000 pieces per hour.
DHL Operations
Supporting the company's various services are the primary activities and complex process critical to DHL's operations. These are: order taking, pick up, documentation, tracing of the supplies when information is needed, billing, packaging, transportation and delivery, problem solving as well as advice and information to the clients and partners (Kostecki, 1998). These are the activities involved in DHL's operations management that make DHL productive and efficient. People involved at these particular activities work together aiming for a common goal which is to provide quality customer service at attractive prices. This is the goal the company has to achieve in order to obtain long-term profitability.
As an express carrier, DHL does not provide products but services. DHL Aviation Hong Kong or DHL Express HK is under the Express Corporate Division of DHL that offers companies and private customers courier, express, and parcel (CEP) services, excluding logistics which is handled by other divisions. DHL does not manufacture products but rather services thus the inputs associated with DHL is not raw materials but equipments such as computers for documentation and tracking of shipments as well as for communication with customers and business partners, and tracking device such as radio frequency identification (RFID); materials such as boxes, packaging tapes, tags and seals for the protection of the goods to be delivered; manpower or human resources such as delivery staff, drivers, customer service representatives, logistics analysts that provide advice and consultations, and managers that ensure who ensure timely delivery; and transportation medium such as ships for ocean shipments, airlines for air freight and trucks for land freight. With the case of DHL Aviation, they used more of air transportation thus they invested on a terminal at the Hong Kong International airport.
DHL's Operations Management
Operations management is defined as the management of function that is responsible for all the activities directly concerned with making a product. It is responsible for collecting various inputs, and converting them into desired outputs (Waters, 1996). This definition is more common for manufacturing companies. However, when you are in the service industry, instead of product, services are created to achieve the desired outputs.
As an express carrier, timely delivery and customer satisfaction are its objectives. These objectives can be met by effective operations management. However, problems commonly arise in a company and through operations management problems can be tackled by observation, formulation, analysis and implementation (Hanson & Olsson, 2001). Through observation managers can be able to realize if there are problems. This can be done by collecting data and setting objectives. For example, DHL set their sales to increase by 5% in 2005 but the company was not able to reach this objective but instead sales dropped by 2%. Managers can realize problems such as untimely delivery and poor package handling as the probable cause of decreasing sales and can therefore provide solution through formulation. Formulation basically involves the review of related data, building models of the current situation and finding solutions to the problems. These solutions are commonly the basic operations management practice such as batch processing, theory of constraints, bottleneck analysis and improving customer service.
Analysis follows formulation in which managers examine the solutions provided and evaluate the best possible solutions to be implemented. Operations managers are also responsible for monitoring of improvements.
With the kind of services that DHL provides, it commonly used operations management practices such as batch processing. With its batch planning system, it can control the number of orders to be pack and to which country it will be delivered. Its batch planning system is computer controlled while its packing system uses automatic packing machine thus DHL is productive enough to be considered having good operations management.
However, since DHL Hong Kong delivers goods and provides services mostly outside Hong Kong, it still occasionally encounters late delivery due to inefficient customs controls and procedures. That is, DHL sometimes encountered problems in getting the parcels through the border controls and ensuring necessary documentations (Kostecki, 1998). To address this issue, DHL parent company puts local customs service department in every major country whose mission is to get the cargo through customs at the right time, and responsible for daily reports, providing detailed information about customs troublespots (Lorange, 1998).
Management Paper Sample on DHL Aviation (Hong Kong) Ltd
Introduction
The paper is a discussion on operations and operations management using DHL Aviations Hong Kong Ltd. as an example. The paper tackles about the operations of DHL in Hong Kong and other related issues concerning operations management.
Company Profile
DHL Aviation (Hong Kong) Ltd. or simply DHL Hong Kong is part of the expansion and growth of DHL Express International that originated in San Francisco and now owned by the Deutsche Post World Net (DPWN). DHL belongs to the international air express industry, whose business includes courier services, logistics, air and ocean freight, consultancy and other value-added services related supply chain such as network and facility design, warehousing, transportation management and consolidation, primary and secondary packaging, customs management, security and cargo insurance.
DHL started at Hong Kong in 1972 in order to provide services in the Asia Pacific Region. In 2000, the company's Central Asia Hub at the Hong Kong International airport began operation that handles over 100 flights a day that further resulted to agreement and construction of the Express Cargo Terminal of the Hong Kong International Airport wherein DHL invested about HK$780 million and serving as the home of DHL's Asian Network (DHL, 2006) that includes DHL Bangkok, China and others. The shipment handling operations of the DHL central Asia Hub is supported by Material Handling System with a throughput of about 20,000 pieces per hour.
DHL Operations
Supporting the company's various services are the primary activities and complex process critical to DHL's operations. These are: order taking, pick up, documentation, tracing of the supplies when information is needed, billing, packaging, transportation and delivery, problem solving as well as advice and information to the clients and partners (Kostecki, 1998). These are the activities involved in DHL's operations management that make DHL productive and efficient. People involved at these particular activities work together aiming for a common goal which is to provide quality customer service at attractive prices. This is the goal the company has to achieve in order to obtain long-term profitability.
As an express carrier, DHL does not provide products but services. DHL Aviation Hong Kong or DHL Express HK is under the Express Corporate Division of DHL that offers companies and private customers courier, express, and parcel (CEP) services, excluding logistics which is handled by other divisions. DHL does not manufacture products but rather services thus the inputs associated with DHL is not raw materials but equipments such as computers for documentation and tracking of shipments as well as for communication with customers and business partners, and tracking device such as radio frequency identification (RFID); materials such as boxes, packaging tapes, tags and seals for the protection of the goods to be delivered; manpower or human resources such as delivery staff, drivers, customer service representatives, logistics analysts that provide advice and consultations, and managers that ensure who ensure timely delivery; and transportation medium such as ships for ocean shipments, airlines for air freight and trucks for land freight. With the case of DHL Aviation, they used more of air transportation thus they invested on a terminal at the Hong Kong International airport.
DHL's Operations Management
Operations management is defined as the management of function that is responsible for all the activities directly concerned with making a product. It is responsible for collecting various inputs, and converting them into desired outputs (Waters, 1996). This definition is more common for manufacturing companies. However, when you are in the service industry, instead of product, services are created to achieve the desired outputs.
As an express carrier, timely delivery and customer satisfaction are its objectives. These objectives can be met by effective operations management. However, problems commonly arise in a company and through operations management problems can be tackled by observation, formulation, analysis and implementation (Hanson & Olsson, 2001). Through observation managers can be able to realize if there are problems. This can be done by collecting data and setting objectives. For example, DHL set their sales to increase by 5% in 2005 but the company was not able to reach this objective but instead sales dropped by 2%. Managers can realize problems such as untimely delivery and poor package handling as the probable cause of decreasing sales and can therefore provide solution through formulation. Formulation basically involves the review of related data, building models of the current situation and finding solutions to the problems. These solutions are commonly the basic operations management practice such as batch processing, theory of constraints, bottleneck analysis and improving customer service.
Analysis follows formulation in which managers examine the solutions provided and evaluate the best possible solutions to be implemented. Operations managers are also responsible for monitoring of improvements.
With the kind of services that DHL provides, it commonly used operations management practices such as batch processing. With its batch planning system, it can control the number of orders to be pack and to which country it will be delivered. Its batch planning system is computer controlled while its packing system uses automatic packing machine thus DHL is productive enough to be considered having good operations management.
However, since DHL Hong Kong delivers goods and provides services mostly outside Hong Kong, it still occasionally encounters late delivery due to inefficient customs controls and procedures. That is, DHL sometimes encountered problems in getting the parcels through the border controls and ensuring necessary documentations (Kostecki, 1998). To address this issue, DHL parent company puts local customs service department in every major country whose mission is to get the cargo through customs at the right time, and responsible for daily reports, providing detailed information about customs troublespots (Lorange, 1998).
The paper is a discussion on operations and operations management using DHL Aviations Hong Kong Ltd. as an example. The paper tackles about the operations of DHL in Hong Kong and other related issues concerning operations management.
Company Profile
DHL Aviation (Hong Kong) Ltd. or simply DHL Hong Kong is part of the expansion and growth of DHL Express International that originated in San Francisco and now owned by the Deutsche Post World Net (DPWN). DHL belongs to the international air express industry, whose business includes courier services, logistics, air and ocean freight, consultancy and other value-added services related supply chain such as network and facility design, warehousing, transportation management and consolidation, primary and secondary packaging, customs management, security and cargo insurance.
DHL started at Hong Kong in 1972 in order to provide services in the Asia Pacific Region. In 2000, the company's Central Asia Hub at the Hong Kong International airport began operation that handles over 100 flights a day that further resulted to agreement and construction of the Express Cargo Terminal of the Hong Kong International Airport wherein DHL invested about HK$780 million and serving as the home of DHL's Asian Network (DHL, 2006) that includes DHL Bangkok, China and others. The shipment handling operations of the DHL central Asia Hub is supported by Material Handling System with a throughput of about 20,000 pieces per hour.
DHL Operations
Supporting the company's various services are the primary activities and complex process critical to DHL's operations. These are: order taking, pick up, documentation, tracing of the supplies when information is needed, billing, packaging, transportation and delivery, problem solving as well as advice and information to the clients and partners (Kostecki, 1998). These are the activities involved in DHL's operations management that make DHL productive and efficient. People involved at these particular activities work together aiming for a common goal which is to provide quality customer service at attractive prices. This is the goal the company has to achieve in order to obtain long-term profitability.
As an express carrier, DHL does not provide products but services. DHL Aviation Hong Kong or DHL Express HK is under the Express Corporate Division of DHL that offers companies and private customers courier, express, and parcel (CEP) services, excluding logistics which is handled by other divisions. DHL does not manufacture products but rather services thus the inputs associated with DHL is not raw materials but equipments such as computers for documentation and tracking of shipments as well as for communication with customers and business partners, and tracking device such as radio frequency identification (RFID); materials such as boxes, packaging tapes, tags and seals for the protection of the goods to be delivered; manpower or human resources such as delivery staff, drivers, customer service representatives, logistics analysts that provide advice and consultations, and managers that ensure who ensure timely delivery; and transportation medium such as ships for ocean shipments, airlines for air freight and trucks for land freight. With the case of DHL Aviation, they used more of air transportation thus they invested on a terminal at the Hong Kong International airport.
DHL's Operations Management
Operations management is defined as the management of function that is responsible for all the activities directly concerned with making a product. It is responsible for collecting various inputs, and converting them into desired outputs (Waters, 1996). This definition is more common for manufacturing companies. However, when you are in the service industry, instead of product, services are created to achieve the desired outputs.
As an express carrier, timely delivery and customer satisfaction are its objectives. These objectives can be met by effective operations management. However, problems commonly arise in a company and through operations management problems can be tackled by observation, formulation, analysis and implementation (Hanson & Olsson, 2001). Through observation managers can be able to realize if there are problems. This can be done by collecting data and setting objectives. For example, DHL set their sales to increase by 5% in 2005 but the company was not able to reach this objective but instead sales dropped by 2%. Managers can realize problems such as untimely delivery and poor package handling as the probable cause of decreasing sales and can therefore provide solution through formulation. Formulation basically involves the review of related data, building models of the current situation and finding solutions to the problems. These solutions are commonly the basic operations management practice such as batch processing, theory of constraints, bottleneck analysis and improving customer service.
Analysis follows formulation in which managers examine the solutions provided and evaluate the best possible solutions to be implemented. Operations managers are also responsible for monitoring of improvements.
With the kind of services that DHL provides, it commonly used operations management practices such as batch processing. With its batch planning system, it can control the number of orders to be pack and to which country it will be delivered. Its batch planning system is computer controlled while its packing system uses automatic packing machine thus DHL is productive enough to be considered having good operations management.
However, since DHL Hong Kong delivers goods and provides services mostly outside Hong Kong, it still occasionally encounters late delivery due to inefficient customs controls and procedures. That is, DHL sometimes encountered problems in getting the parcels through the border controls and ensuring necessary documentations (Kostecki, 1998). To address this issue, DHL parent company puts local customs service department in every major country whose mission is to get the cargo through customs at the right time, and responsible for daily reports, providing detailed information about customs troublespots (Lorange, 1998).
Management Paper Sample on Business Organizations and the Human Resources
Introduction
Every business firm or company has different internal organizations having a variety of functions. These organizations are interrelated and are working together to ensure the business firms their success in profiting from the market. The more functions each of the organization perform; the better is the performance of the company as a whole. This gives each of the companies their corresponding advantages and benefits from the market.
One of the company's basic organizations is the Human Resource Management, which is highly responsible with the maintenance of its employees. The Human Resource Management team does a variety of tasks and functions, and is crucial in its objective concerning the work and interests of the employees in the company. Oftentimes, we encounter the team working for the Human Resource Management during job interviews or job openings. The people behind this team are performing various activities such as recruitment, training, rewards, performance appraisal, and with the health and safety of the employees of a certain business firm or company.
This paper discusses the functions, importance and the management of the Human Resource Department in a company. In the different areas mentioned, only three aspects are given emphasis, which could greatly explain the various tasks being performed by the Human Resource in general. This paper includes the significance of Human Resource Management and its relationship with the other internal organizations or functions present in a company, namely the management function, procurement function, information, communication, finance, marketing, and the production function respectively.
Business Organizations and the Human Resources
It has been reported that business organizations perform eight basic functions, namely, the management function, the production function, the marketing function, the finance function, the communication function, the information function, the purchasing or procurement function and the human resources function ('How Good Procurement Affects Business Systems' 2006). The management function is concerned with the planning, organizing, directing, staffing, controlling and communicating for business operations, for each businessperson must understand the importance of different managerial functions for purposes of effective operations. With the production function, it is concerned with the transformation or changing raw materials into finished goods and services needed by customers, or the transformation of inputs. The marketing function is involved with ensuring that the transformed goods reach the final customers. Then there is also the obvious finance function as well as the communication and the information functions that every business enterprise has to perform, while the procurement or purchasing function is responsible with the uninterrupted flow of supply and requirement s needed in business activities ('How Good Procurement Affects Business Systems' 2006).
The last function is the human resource function, which is concerned with managing the people as an important business resource ('How Good Procurement Affects Business Systems' 2006). It has been reported that HRM or the Human Resource Management is the term increasingly used to refer to the philosophy, policies, procedures, and practices related to the management of an organization's employees (Sims 2002, p. 2). It is particularly concerned with all the activities that contribute to successfully attracting, developing, motivating, planning systematic approaches, and maintaining a high-performing workforce that result in organizational success (Sims 2002, pp. 2-3). In addition, it gives an increasing emphasis on the personal needs of the organization and its members, where the challenge is to create an organizational environment in which each employee can grow and develop to his or her fullest extent. In the desire of the Human Resources to make successful organizations, it aims at developing strategies for the total organization focused on clarifying an organization's current and potential problems and developing solutions for them. They are oriented toward action, the individual, the global marketplace, and the future, giving emphasis that nowadays, it is difficult to envision any organization achieving success without efficient HRM programs and activities (Sims 2002, p. 3).
Human Resources Management Functions
In maintaining and implementing balance between the employees' aspirations and the goals of a business firm, the company must generate the highly effective and efficient Human Resource Management. For the Human Resources Management to contribute to the profitability, quality, and other organizational goals of the company, it should be able to closely integrate careful planning and decision-making. To be able to do this, it must perform various activities such as recruitment, compensation or giving rewards, training or career development, performance appraisal, and health and safety developments.
Among the activities of the Human Resources Management, perhaps the most crucial is the Recruitment Process or the process of selecting employees, which involves the interviewing, recruiting, screening, and selecting the most qualified candidates, filling some positions through transfer or promotion, and temporary employment coordination (Sims 2002, p. 4). In addition, the author reports that recruitment is the process, by which organizations discover, develop, seek, and attract individuals to fill actual or anticipated job vacancies, or is a bridge-building activity, bringing together those with jobs to fill and those seeking jobs. With the increased complexity of positions to be filled and equal employment opportunity, the recruitment process requires sophisticated procedures to identify and select prospective employees (Sims 2002, p. 4). This means that the Human Resources Management must carefully determine the available job openings and the job qualification of the candidate, to ensure the organization's benefit. In its participation in maintaining balance, it serves to mediate the company and the new candidates. It upholds in itself the goals and values of the company, tries to search for qualified individuals having the same goals and values.
Moreover, most organizations have an ongoing need to recruit new employees to fill job vacancies when employees leave or are promoted, to acquire new skills, and to permit organizational growth (Sims 2002, p. 107). Given the rise of competition in the market, both the company and the prospective candidate employee must benefit from the situation by the efficient and careful decisions made by the recruitment team. The recruitment process is a very expensive process considering the costs of advertising, agency fees, employee referral bonuses, applicant and staff travel, relocation costs, and recruiter salaries. However, these costs will not be given much importance with making the right decisions from proper planning, for without accurate planning, organizations may recruit the wrong number or type of employees, and without successful recruiting to create a sizable pool of candidates, even the most accurate selection system is of little use (Sims 2002, p. 108).
Different internal and external factors influence the recruitment process. These factors contribute to the nature of the organization's recruiting activities, its strategies and philosophies, and other important features.
* Organizational Reputation. This is the most important factor affecting the success of the recruitment program, as the company projects a certain image to the community at large. This image influences its ability to attract qualified employees.
* Attractiveness to the Job. Jobs offered by the company that are considered as uninteresting, oppressive or unattractive will make the recruitment process difficult.
* Recruiting Goals. This is to optimize the pool of qualified applicants, and must yield employees who can be further assessed in the selection process, individuals who will be good performers, and who will stay with the organizations for a reasonable length of time (Sims 2002, p. 110-111).
* Recruitment Philosophy. This involves the depth of commitment to seeking and hiring a diverse range of employees.
* Labor Market Conditions. When organizations are not creating new jobs, there is often an oversupply of qualified labor (Sims 2002, p. 112).
* Labor Unions. The existence of labor unions can affect attracting employees, for bad reputation.
* Economic Trends. With a low economy, high demand for work follows, and more work for the Human Resources Management.
* Government Influences. This involves the benefits that an employee gets in rendering his or her services.
Another essential activity of the Human Resource Management is to provide a safe and healthy work environment. It has been reported that the legal, social and political pressures on organizations ensure that the health and safety of their employees continue to have a great impact on HRM practices, and part of this impact and concern is a result of the Occupational Safety and Health Act of 1970 (Sims 2002, p. 7). Another source of change has been the societal concern about exposure to hazardous substances or stress in the workplace, which is being responded to by organizations by instituting accident prevention programs and programs designed to ensure the health and mental well-being of their employees (Sims 2002, p. 7).
It has been reported that in today's successful organizations, safety and health management concerns go beyond the physical condition of the workplace to a regard for employees' mental and emotional well-being and a commitment to protecting the surrounding community from pollution and exposure to toxic substances, which now involves the employees at all levels (Sims 2002, p. 307). In relation to accidents, the costs involved are directly related to the loss of production, which decreases output, damage or idle equipments, and products. Without the safe and healthy environment, employees become susceptible to illnesses, which present greater loss to the company. It lowers the morale of the employees, gives less favorable public relations, and presents a weakened ability to recruit and retain employees. It is only natural that employee morale will suffer in an unsafe environment, and if a member of a maintenance team is injured, the harmony of the team may also be impaired by the absence of the injured employee (Sims 2002, p. 308), leading to decrease in productivity and quality of performance. These problems could also initiate labor unions, which degrade the reputation of the company. A poor safety record is also harmful to an organization's public relations, deterring customers from purchasing a business's products or services (Sims 2002, p. 308).
Providing a safe and healthy environment entails providing good compensation, implementing child labor laws, and work for physically challenged individuals. Compensation entails pay and benefits such as wage and salary administration, job descriptions, executive compensation, incentive pay, insurance, vacation/leave administration, retirement plans, profit sharing, and stock plans. These bring a variety of perspectives to the employees to bear in deciding whether they are satisfied with the compensation they receive, thus making management of compensation a particularly challenging HRM activity (Sims 2002, p. 7). In the Human Resources Management's participation in maintaining balance between the goals of the business firm and its employees, fostering a safe and healthy work environment can help the employees increase their productivity, work well with their colleagues, and improve their performance, which are all helpful for the success of the company. The success of the company, thus, brings each employee shared success and stable work opportunities.
Sims (2002) points out that, performance appraisal is the process, by which an employee's contribution to the organization during a specified period of time is assessed (p. 197). It also measures the adequacy of their employees' job performance and communicate these evaluations to them, which leads the organization to determine appropriate rewards or remedial actions to motivate employees to continue appropriate behaviors and correct inappropriate ones (Sims 2002, pp. 5-6). Generally, organizations strive to do the following at all levels: 1) design jobs and work systems to accomplish goals, 2) hire individuals with the abilities and desire to perform effectively, and 3) train, motivate, and reward employees for performance and productivity (Sims 2002, p. 198). This fashion allows different organizations to diffuse strategic goals throughout the system, and evaluation of performance. This evaluation serves as a control mechanism that provides not only feedback to individuals but also an organizational assessment of how things are progressing (Sims 2002, p. 198). With the role of the Human Resources Management to maintain and enhance the company's workforce, it is important to develop employees so that they are using their fullest capabilities, thus improving the effectiveness of the organization (Sims 2002, p. 198).
Performance appraisals will be useful without stating standards in terms of organizational performance, which is possible through the performance management system. Sims (2002) reports that the purpose of performance management is to make sure that employee goals, employee behaviors used to achieve those goals and feedback of information about performance are all linked to the organizational strategy (p. 199). It consists of several parts:
1. Defining performance. It is a desirable to carefully define performance so that it supports the organization's strategic goals, for setting of clear goals for individual employees is a critical component.
2. Empowering employees. This is desirable to achieve better results.
3. Measuring performance. The key to this step is to measure often and use the information for corrections.
4. Feedback and coaching. With frequent feedback, employees will know their behavior and do something about incorrect ones.
The Human Resources Management must be able to develop performance appraisals to continually motivate their employees to work hard. It has been reported that today, successful organizations and managers treat the performance appraisal as an evaluation and development tool, as well as formal legal document (Sims 2002, p. 200). Emphasizing the positive accomplishments and deficiencies in the future and in the past helps the organization in drafting detailed plans for development. In addition, documenting performance effectively and providing feedback in a constructive manner, employees are less likely to respond defensively to feedback, and the appraisal process is more likely to motivate employees to improve where necessary (Sims 2002, p. 200). In the Human Resources Management's role to balance the goals of the company and its employees, the development of a standard performance appraisal process will help the whole organization to improve their bottom-line performance, up-lift motivational efforts, and resolve most moral problems (Sims 2002, p. 198), thus, increasing the company's productivity and quality of work performance. Moreover, the Human Resources Management can serve the organization the best way they can by ensuring the whole company that they are confident in using performance appraisal systems to achieve the company's goals and aspirations.
Conclusion
It has been reported that the Human Resources Management (HRM) has a variety of functions, such as deciding what staffing needs a company have, whether to use independent contractors or hire employees to fill these needs, recruiting and training the best employees, ensuring they are high performers, dealing with performance issues, and ensuring that the personnel and management practices conform to various regulations (McNamara 1999). It is also responsible in managing employee benefits and compensation, employee records and personnel policies (McNamara 1999). It is involved with different activities which helps maintain the balance between the financial goals and the personal goals of its employees. The goals and strategic plans in relation to these activities must ensure the success of the company or the organization and must be in line with its long-term aspirations. Therefore, it can be concluded that the Human Resources Management plays an essential role in the success of the whole organization. Just the same, employees in the Human Resources Management team must be consistent with their standards, and uphold the same principles in their development to set as good examples for other employees of the organization. This would not only bring success to the team, but for the whole company as well.
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